MALAWI Is Making A Bold Move To Protect Its Struggling Economy — And It’s Turning To Tourists To Help Do It.
Finance Minister Joseph Mwanamvekha Announced Friday That All Foreign Visitors Must Now Pay For Hotel Stays Using Hard Currencies Like The U.S. Dollar, Euro, Or British Pound. The Decision Comes As Malawi Battles Rapidly Declining Foreign Reserves After The IMF Terminated Its Extended Credit Facility Earlier This Year And Several Donors Scaled Back Financial Support.
💰 Tourism Sector Put On The Front Line
Under The New Rules, Hotels And Tourism Businesses Must Apply For Special Licenses Allowing Them To Handle Foreign Currency Directly With The Central Bank. Mwanamvekha Says The Policy Will “Save Every Dollar” And Help Seal Off Loopholes Draining Malawi’s Forex Supply.
🚨 More Pressure On Exporters
Exporters Are Also Being Pulled Into The Government’s Currency-Tightening Strategy:
• They Will Have 90 Days — Instead Of 120 — To Repatriate Earnings.
• Any Foreign Currency They Have Left After Covering Import Costs Must Be Handed Over To Authorities.
📉 Crackdown On Forex Speculation
The Government Is Additionally Banning Short-Term Foreign-Exchange Derivatives, Financial Instruments That Banks Use To Hedge Or Speculate On The Kwacha’s Movements. Officials Say The Products Have Been Abused And Will Only Return Once Stronger Regulations Are In Place.
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