Powers and Functions of the Reserve Bank of Malawi

The Reserve Bank of Malawi has been entrusted with a wide range of powers and functions that enable it to effectively manage the country’s economy and financial system. This article outlines these key areas:

Managing Foreign Assets

• The bank manages foreign assets and maintains foreign exchange reserves at an adequate level.

Exchange Control

• The bank exercises functions necessary in the administration of laws relating to the control of foreign exchange transactions.

Foreign Currency Transactions

• The bank buys and sells Malawi currency against convertible currencies and, at its discretion, against other eligible currencies.

Banking Services

• The bank acts as banker to certain funds, corporations, institutions, banks, or other financial institutions in Malawi.

Investments

• The bank invests in securities for staff funds and superannuation funds and other internal funds.

Lending

• The bank lends to statutory bodies with the prior consent of the Minister.

International Payments

• On behalf of Malawi, the bank makes payments to international organizations.

Limitations and Conditions

These powers and functions are subject to various conditions and limitations as specified in the laws governing the Reserve Bank of Malawi.