Fiscal policies are more potent to redress acute foreign currency exchange shortage in Malawi

Brian Phiri Kampanje

MPRA Paper from University Library of Munich, Germany

Abstract: The ultimate guardrail of forex reserves in Malawi should be the National Assembly whose sole existence is to serve the needs of the Malawians. The monetary authorities can intervene in the market forces to stabilise the value of the Malawi Kwacha against major trading currencies but have limited capacity to influence on how forex in Malawi can be externalised or what measures can be done to keep more forex only meant for crucial imports. Parliament through fiscal policies is able to do so and it is now time Malawi must adopt contractionary fiscal policies by spending less on non-essential expenses such as foreign travel, suspend purchase of new fleets of vehicles but above all, use the tax code to discourage importation of non-essential items into Malawi.

Keywords: Fiscal; Malawi; Policies; Shortage; Forex (search for similar items in EconPapers)
JEL-codes: H3 H30 H6 H62 (search for similar items in EconPapers)
Date: 2022-08-15
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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