Malawi's Bold Move: Tourists to Pay in Dollars to Boost Reserves

Malawi is taking a bold step to boost its foreign reserves. The country has decided that tourists must pay for hotel stays using dollars, euros, or other strong currencies. This is a big change, and it's all about getting more hard cash into the country. The finance minister shared this news. He explained that Malawi's foreign reserves have been under pressure. This started when the International Monetary Fund stopped giving them credit. Plus, some donors cut back on their support. So, Malawi is looking for new ways to get money. Tourism businesses will need special licenses. These licenses will let them handle foreign exchange directly with the central bank. The goal is to save every dollar and close any loopholes. Exporters will also have to act faster. They now have 90 days to bring their earnings back to Malawi, down from 120 days. And they must hand over any leftover foreign currency after paying for imports. Malawi is also banning short-term foreign-exchange derivatives. These are complex contracts that banks use to bet on or protect against changes in the kwacha, Malawi's currency. The government says some people have abused these contracts. They will only allow them again once stricter rules are in place. This is a big shift for Malawi. It shows how the country is trying to manage its money better. But will it work? Only time will tell.