Maravi

(NYASATIMES, BLOOMBERG) Malawi urged to stop buying luxury goods, save foreign exchange

Malawi urged to stop buying luxury goods, save foreign exchange
By Nyasa Times
Published: November 20, 2009

Malawians should stop importing luxuries such as cars and televisions to conserve foreign exchange in the southern African nation, the central bank said.

The country has a shortage of foreign currency caused by falling prices for tobacco, its biggest export, a decline in foreign portfolio investment and the global recession.

“We are in a crisis,” Reserve Bank of Malawi Governor Perks Ligoya said in remarks broadcast on Capital Radio, a closely held broadcaster, today. “In hard times like these, we cannot afford luxuries, we have little resources.”

The Malawian kwacha has weakened 1.6 percent to 142.9 against the dollar from the 140.6 it was set at for more than two years until Oct. 28. On the black market, the currency is trading at 190.

Malawi’s government has announced plans to conserve financial resources, including restricting travel abroad by all public officials to no more than six times a year.

–Bloomberg

Labels: BINGU WA MUTHARIKA, FOREX

posted by MrK @ 6:59 PM