As a more detailed examination shows, the flat yield curve and the structure of bank deposit rates have led to a number of substitution effects. First, there has been a substitution from longer-term maturity assets into instruments covered by M3, which offer similar remuneration but greater liquidity and less risk.
One such initiative is the computerization of export proceeds tracking system. We are all aware that in November 2008, the Bank rolled out the Foreign Exchange Statistical Database System, which is now being used to monitor and enforce repatriation of export proceeds to Malawi.