Munich Personal RePEc Archive

Sources and application of forex for Malawian imported services

Phiri Kampanje, Brian (2022): Sources and application of forex for Malawian imported services.


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Malawi suffers from massive trade imbalance as it is a net importer of goods and this causes acute forex shortage. The situation is further exacerbated by the fact that imported services which greatly outweigh exported services appear not to be included in the trade deficit figure and therefore source of financing for the imported services is not known. There is a possibility of huge parallel forex market thriving in Malawi and this should be a cause of concern for monetary authorities and the general citizenry. It is recommended that monetary authorities should undertake further investigations in this regard.

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