Malawi’s Central Bank Imposes Foreign Currency Withdrawal Limits on Diplomats
The Reserve Bank of Malawi (RBM) has introduced new regulations imposing limits on foreign currency withdrawals by diplomats and their embassies. Under these new rules, diplomatic offices can withdraw up to $15,000 (or its equivalent) per month for operational purposes, while ambassadors and consuls are limited to $3,000 (or equivalent) per month.
These restrictions are part of the RBM’s strategy to maintain financial and price stability, aligning with its broader objective to foster economic growth while ensuring a stable financial environment. Diplomatic entities, including embassies, consulates, and foreign staff, are required to adhere to the new withdrawal limits.
However, the move has raised concerns among some observers, with fears that it could prompt diplomatic missions to relocate to more economically stable countries such as Zambia, Zimbabwe, or South Africa. Onjezani Kenani, a notable social media influencer, voiced his concerns about the potential consequences of the new policy.
“The Reserve Bank’s decision to limit foreign exchange access could drive embassies to move to neighboring countries, exacerbating Malawi’s already fragile foreign exchange reserves,” Kenani warned.
Malawi’s economy, already challenged by slow growth and the aftermath of Cyclone Freddy, has seen little improvement, with the World Bank forecasting a modest 1.4% growth for 2023. The imposition of foreign currency withdrawal limits further highlights the country’s ongoing economic struggles.
Source: Malawi24
