Malawi’s Hidden Forex Leak: The Diaspora Role in Breaking our Financial System
I fully support the Reserve Bank of Malawi Governor’s directive to reject import payments not processed through the formal local banking system.
There is an emerging underground system where members of the diaspora pay for goods and services abroad on behalf of Malawians at home, receiving Malawi Kwacha deposits into local accounts at inflated exchange rates.
These transactions bypass official foreign exchange regulations and undermine Malawi’s financial system. How can the Reserve Bank accurately record and monitor the cost of education, goods, or services imported into Malawi when such transactions never pass through formal banking channels? Any deposit into a Malawian bank account backed by these shadow forex dealings violates exchange control laws.
If you want to pay fees or import goods from abroad, you must follow established procedures—whether through an official bank transfer or by using regulated channels such as a Visa or Mastercard. Nowhere in these procedures is “use someone in the diaspora” listed as an option. Those facilitating these transactions are creating a parallel system that weakens Malawi’s economy.
It is not the person abroad who will face punishment but the Malawian resident who has sidestepped the law. Goods imported without the official backing of Malawi’s banking system should be confiscated, and illegal tuition fee payments using these channels should be investigated. Those studying abroad must be properly registered, and scholarships must be verifiable.
You may argue, “It’s my dollar or euro.” But once that foreign currency enters Malawi and touches the Kwacha outside official channels, you’ve broken the law. The shortage of forex in Malawi cannot be used as an excuse for financial indiscipline. If you want to assist someone back home, remit the funds legally—open a Foreign Currency Denominated Account (FCDA), deposit your forex, and follow due process.
Proposing anything outside this legal framework is promoting chaos. Remember, Malawi invested in your education. One way to give back is by ensuring your foreign exchange contributions strengthen the local economy. Deposit your dollars into Malawian banks or come home and offer your skills in person.
Let’s respect the system, build our economy, and reject these shadow financial practices.
Shoot the message, not the messenger.
