Foreign Exchange Controls Affecting Trade 79. In February of 1994, the Government of Malawi eliminated exchange controls and introduced a market-based exchange rate system. Importers no longer need to obtain RBM approval to place international orders or to pay for imports. General Financing Availability 80. Malawi kwacha-denominated financing is available from Malawi's commercial institutions.
Credit is allocated on market terms, and foreign investors are eligible to apply for it.
Proceeds from any investment using local resources, however, are not remittable. As of May 1997, the base lending rate of the two largest commercial banks was 23 percent. Imports into Malawi are financed primarily through secured letters of credit. Export Financing and Insurance 82. OPIC has an Investment Guarantee Agreement with Malawi.