Ministry exposes dollar cartel manipulating exchange rates

Ministry of Trade and Industry has exposed a cartel of unscrupulous businesspersons who trade the US dollar at K10,000 on the parallel market.

This according to the ministry, is allegedly meant to fuel public frustration against the Chakwera-led government over the economic crisis.

The revelation follows recent business inspections by the Ministry of Trade and Industry in collaboration with the Competition and Fair Trading Commission (CFTC) and the Malawi Bureau of Standards (MBS).

The inspection uncovered widespread malpractice, including price manipulation, hoarding of essential commodities like sugar, and illegal exports.

During the recent operations, Minister of Trade Vitumbiko Mumba noted a wide range of malpractices, including cooking oil manufacturing companies illegally pressuring other producers to increase prices using unorthodox means.

Mumba also highlighted the act of hoarding essential commodities such as sugar with the aim of selling them at a higher price, as well as the illegal exportation of these goods.

Mumba further expressed the government’s commitment to enforcing the Essential Goods and Services Act, the Economic Sabotage Act, and reviewing the Business Licensing Act of 2012.

The development comes a month after President Lazarus Chakwera made claims that intelligence gathered by his administration suggested that the hyperinflation in Malawi in being intentionally orchestrated by certain business owners allegedly with the support of an opposition party.