Veteran politician Frank Tumpale Mwenifumbo has praised Reserve Bank of Malawi (RBM) Governor Dr. Macdonald Mafuta Mwale for his resolute stance against the forex parallel market.
Mwenifumbo lauded Mwale’s acknowledgment of the black market as a key driver of forex scarcity, and his vow to combat it aggressively.
Mwenifumbo, a seasoned political figure who was once Malawi’s Deputy Minister of Agriculture and MP for Karonga Central, highlighted how past measures, such as the 2004 suspension of forex bureaus, effectively curbed black-market activities.
He stressed that tackling forex bureaus, which he claims fuel the parallel market, is essential for lasting reform.
Mwenifumbo urged political parties to make the fight against the parallel market a bipartisan agenda, emphasizing that success requires national unity and strong political will.
RBM’s has embarked on a campaign urging the public to avoid speculative behavior regarding the Kwacha, which has contributed to rising commodity prices.
During a stakeholder meeting in Mzuzu, RBM Director of Financial Markets Chakudza Linje urged business owners to base pricing decisions on facts rather than speculation, noting that the Monetary Policy Committee has maintained the policy rate at 26.0 percent, projecting a gradual reduction in inflation throughout 2025.
Dr. Macdonald Mafuta Mwale, appointed as RBM Governor in January 2025, brings a wealth of experience to the role.
He holds a Ph.D. in Economics from Aberdeen University, Scotland; a Master of Science in Economics and Econometrics from Nottingham University, England; and a Bachelor’s Degree in Social Science (Economics) from Chancellor College, University of Malawi.
His career at RBM includes roles as Director of Research and Statistics and Deputy Governor for Economics. In December 2021, he served as Secretary to the Treasury before returning to RBM as Deputy Governor in December 2024.
Since assuming leadership, Dr. Mwale has implemented measures to stabilize Malawi’s economy. In January 2025, the Monetary Policy Committee maintained the policy rate at 26%, aiming to control inflation and stabilize prices.
This decision reflects a commitment to tighten monetary policy to mitigate spillover effects from rising food prices to non-food items.
Dr. Mwale has also addressed the issue of forex scarcity, identifying the parallel market as a significant contributor to the problem. He has expressed determination to combat black-market activities, recognizing their impact on the official exchange rate and overall economic stability.
His approach combines maintaining stringent monetary policies with efforts to eliminate illicit forex trading, aiming to create a more stable and transparent financial environment in Malawi.
For more insights into Dr. Mwale’s perspectives and policy directions, you can watch his exclusive interview below: https://youtu.be/cniCTMsxlkg
