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Malawi reels from acute shortages of foreign exchange currency

Published

3 years ago

May 23, 2022

The Malawian Reserve Bank has revealed that the country is facing acute shortages of foreign exchange currency, forcing two international airlines to suspend some of their services in the country.

The situation, according to the Eastern African apex bank, has negatively affected the operations of many more local and international cross-border businesses.

A latest monetary policy report released by the Reserve Bank on Monday, indicates that the county’s official gross foreign exchange reserves in the first quarter of 2022 stood at $374.48 million, which was a drop from the $429.17 million in the fourth quarter of last year.

The report also stated that private sector foreign exchange reserves also declined from $425.52 million last year to $391.49 million this year.

“The situation has led to an acute shortage of foreign currency on the market, forcing foreign traders to halt or suspend some of their operations in Malawi,” the report said.

The government has however, says it hopes the foreign exchange reserve will start to increase once the International Monetary Fund resumes providing Malawi with an Extended Credit Facility (ECF), an instrument that provides financial assistance to countries with protracted payment problems.

Related Topics:Currency Featured Foreign exchange Malawi

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 hours ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”

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Tanzania tells IMF economy projected to grow by 6% in 2025

Published

4 hours ago

December 20, 2024

Ifeoluwa Dada

Tanzania’s economy is expected to grow by about 6% in 2025 from an estimated 5.4% growth in 2024, its finance minister and central bank governor said in a letter to the International Monetary Fund (IMF).

Some of the potential risks to the performance in the near term would include intensification of regional conflicts, increased commodity price volatility, a global economic slowdown and natural disasters related to climate change, Finance Minister, Mwigulu Nchemba, and Central Bank Governor, Emmanuel Tutuba, said.

Real GDP increased by 5.3% in 2023 from 4.7% in 2022, propelled by private investments on the demand side and manufacturing, construction, and agriculture on the supply side.

Strict monetary policy and moderate food and energy prices contributed to the decline in inflation from 4.3% in 2022 to 3.8% in 2023. In 2023, the Tanzanian shilling lost 8% of its value due to a lack of foreign exchange.