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(NYASATIMES) Malawi begs Mozambique to lend it fuel after being depleted of forex

Malawi begs Mozambique to lend it fuel after being depleted of forex
By Nyasa Times
Published: November 12, 2009

The Malawi Government has been pressing the Mozambique Government in a bit to borrow fuel as Malawi has run out of foreign exchange, it has been learnt.

Malawi is facing a serious fuel shortage following the scarcity of foreign exchange. Fernando Couto, Chief Executive Officer of the Northern Development Corridor (CDN), which runs the Nacala port and rail system, says that Malawi asked Mozambique to borrow fuel.

“The Malawians have even asked us to lend them fuel”, Couto revealed, denying claims by Malawi authorities that the current shortage of fuel is due to congestion at the Mozambican ports of Nacala and Beira.

Reserve Bank of Malawi (RBM) governor Perks Ligoya (pictured) told a joint news conference with IMF in Lilongwe on Wednesday that, through government, there would be some adjustments in the local currency against other currencies to alleviate the forex problem.

“The movement of the exchange rate will be fixed with the flexibility within the band which would be put in place by the central bank like between MK135 to MK147 per US Dollar,” he said.

He therefore warned unscrupulous dealers of forex that they would be brought to book to face the law which attracts over three years in imprisonment with hard labour if found illegally dealing in forex.

Labels: FOREX, NORTHERN DEVELOPMENT CORRIDOR (MALAWI)

posted by MrK @ 4:51 PM