The Reserve Bank of Malawi (RBM) says Malawi has run out of foreign exchange reserves.
RBM spokesperson Ralph Tseka has confirmed the dire economic situation in an interview with local media.
Tseka said government has been spending 50 million US dollars per month on fuel and this has depleted the country’s fuel reserves.
According to Tseka, the forex in government’s reserves is not enough to last a month.
Malawi has been facing forex shortages for months, forcing some businesses to shut down their operations in the country.
Recently, Mount Meru Petroleum Limited announced that it was moving its trucks to lack of forex in Malawi.
Last weekend, United States Ambassador to Malawi David Young advised the Lazarus Chakwera administration to further devalue the Malawi Kwacha in order to improve the forex situation.
He argued that the exchange rate for the dollar against the Kwacha on the formal market need to be re-aligned with the rate on the black market.
Economic Expert Betchani Tchereni has also called on government to devalue the kwacha which was also devalued in May last year by 25 percent.
Tchereni has further urged government officials to minimise foreign trips as a short term measure solution to the problem.
As a long term solution, Tchereni has said the country should produce more crops that can be exported to other countries.
Malawi mainly relies on tobacco for its forex earnings and the 2023 tobacco marketing season is currently underway.
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