Reserve Bank of Malawi has introduced a system for reporting cross-border financial transactions by commercial banks and other licensed forex institutions.

The development is an action towards ensuring that externalisation does not happen again, as $394.6 was lost due to such malpractices.

With the recently signed memorandum of understanding between RBM and various governmental security agencies, the new system curb forex externalisation, therefore boosting the central bank’s forex reserves.