Malawi has no Forex: RBM starts rationing distribution

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The Reserve Bank of Malawi (RBM) says the bank is rationing distribution of forex to sectors in the country amid the scarcity of forex which has affected importation of commodities such as fuel.

Deputy Governor  of Reverse Bank of Malawi,  William Matambo, has told the local media that the bank is rationing distribution to all sectors.

He also  added that the country has 1.5 months foreign exchange cover.

Amid concerns over the forex shortage and on effects on imports, Matambo claimed that the shortage is temporary and soon will be fixed.

Over the past month, fuel shortage has hit the country and every day there are long queues at few service stations with fuel.

Last weekend, the National Oil Company of Malawi said the company has money in Kwacha but needs US$80 million to fix the fuel problem.

Speaking at the 2022 Malawi Investment Summit at Bingu International Convention Centre (BICC) in Lilongwe last week,  President Lazarus Chakwera admitted that long term forex problems  have led to the current shortage of fuel in the country.

Chakwera said his administration already secured US$28 million from local banks and is in the pursuit of another US$50 million dollars to resolve the crisis.

The president added that he had also instructed the Reserve Bank to prioritise fuel procurement in the allocation of forex.

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