Malawi has directed all foreign tourists to settle hotel bills in hard currency, a measure aimed at strengthening the country’s declining foreign reserves.

Announced by Finance Minister Joseph Mwanamvekha on 21 November 2025, the move mandates that tourism operators obtain special licences to manage foreign exchange directly with the central bank.

Tighter foreign currency rules for tourism

Tourism businesses in Malawi must now formalise the handling of foreign payments through licensed channels.

The directive is designed to centralise foreign-currency inflows from hotel stays and ensure that payments in US dollars or other stable currencies are properly accounted for.

Operators will need approval from the Reserve Bank of Malawi to process these transactions, aligning the tourism sector with broader national currency management policies.

Broader economic measures to conserve dollars

The hard-currency requirement follows the end of Malawi’s IMF Extended Credit Facility and reduced donor budget support.

Other government measures include shortening the repatriation period for exporters from 120 days to 90 days, mandating the surrender of leftover foreign currency after import payments, and banning short-term foreign exchange derivatives until new regulations are in place.

Officials state these steps aim to conserve dollars and close existing loopholes.

Implications for international hotel and travel sectors

For international hotels and travel operators, the new rules could affect pricing, booking processes, and financial planning.

 Companies will need to adapt to stricter reporting and currency handling requirements, potentially influencing the flow of foreign tourists and investment.

Observers note that while the measure targets stabilising national reserves, it may introduce operational complexities for foreign businesses operating in Malawi.