The Reserve Bank Governor, Wilson Banda, was shown an exit door on Friday, some seven months before his three-year contract could come to an end.
Save for other reasons including conflict of interest as he is said to have begun operating a money forex bureau, Banda is also said to have been fired for his failure to adhere to orders aimed at stabilizing forex shortages.
“As head of the regulatory entity, Banda employed a laissez-faire attitude towards finding lasting solutions to the forex crisis. He was incompatible to the agenda of the administration,” notes another official from one of the Malawi Stock Exchange (MSE)-listed leading banks.
Insiders say Banda has stakes in forex bureaus such that he was an interested party in the enforcement of the executive orders.
“He owns shares in certain forex bureaus in Lilongwe and Blantyre. He was, therefore, reluctant to effect the proposed changes.”
Economic experts and business captains have welcomed President Chakwera’s decision to fire Reserve Bank governor, Wilson Banda, as way of reinvigorating the country’s economy.
Banda has been let go some seven months before the end of his contract.
His departure has brought a sigh of relief to stakeholders in the sector who view it as a step in the right direction to align the economy to the country’s development agenda.
“The Central Bank needed this change as soon as yesterday. Wilson Banda failed to steer the ship in the direction of the Vision Malawi2063 agenda. There will now be a positive trajectory from all sector players,” says a University of Malawi economics lecturer who chose to remain anonymous.
Meanwhile, President Chakwera is expected to appoint a new governor any time henceforth.
