The Reserve Bank of Malawi came into existence in 1964 July, under a Parliamentarian Act. Beginning its operations in 1965 June, the Reserve Bank of Malawi was founded to replace a branch of the Federal Bank of Rhodesia and Nyasaland, acting as the central bank of the Federation of Rhodesia and Nyasaland at that time, which proved unsuccessful in its duties.
Historical evolution of the Reserve Bank of Malawi:
Ever since its inception, the total asset of the Reserve Bank of Malawi gradually amounted to K15.96 million, with foreign assets worth K15.2 million. This indicates that the Bank represented 18.1% of the federal money which was exchanged in Malawi.
The year 1981 saw the removal of the Bank?s head office to Lilongwe. This was also the year when the Bank extended its operating areas, leading to an increase in the total assets to K230.7 million, with foreign assets worth K43.9 million.After consolidating its position in the financial market of Malawi, the main functions of the Bank were clearly spelled out by the Reserve Bank of Malawi (RBM) Act in 1989 April.
According to this Act, the major operations of the Bank should be in favor of the growth and development of the Malawi economy, and as per the economic policies on governmental levels.
The reporting head of the Bank, according to the Act, was the Treasury. However, the RBM Act of 1989 made the Bank an autonomous body, with complete authorization to formulate financial policies. It was also a part of the Bank?s responsibility to make sure that monetary developments were consistent in all times.
Towards the end of 1998, the total assets recorded were K18.8 billion with foreign assets, worth K11.3 billion. The Bank celebrated the silver jubilee of its successful operations in 1990, with a total asset amount of K1.03 billion, and foreign assets worth K324.5 million. These figures only reveal the fact that the operations of the Bank had definitely expanded over a span of 25 years, bringing about growth in the financial sectors of the country.
Following can be regarded as the main areas where the Bank concentrated most, to obtain maximum success:
Maintaining a workable position, with respect to the balance of payments
Attaining stability in local prices of items
Achieving growth in real revenues
Last Updated on : 25th June 2013