Parliament to engage central bank over forex scarcity

Officials from a Joint parliamentary committee say they have summoned the Reserve Bank governor over the prevailing forex shortage which has paralysed the economic life of the country.
Importers are failing to import fuel, medicine and fertilizer, among other things due to shortage of forex.
President Dr Lazarus Chakwera recently assured the nation that the central bank was working round the clock to normalise the situation.

Governor Dr Wilson Banda
On Saturday, the Parliamentary Joint Committee held an emergency meeting with various stakeholders, including fuel importers, in a bid to find a stopgap solution to the fuel crisis.
During the meeting, the National Oil Company of Malawi (Nocma) said it is struggling to access forex despite it having billions of kwacha to cover fuel imports.
According to Nocma deputy CEO, Hellen Buluma, Malawi needs an outright $80 million for the fuel situation is to stabilise.
Chairperson of the Parliamentary Joint Committee, Werani Chilenga said officials from the Reserve Bank of Malawi will appear before the committee over the matter.
During the meeting with the Joint Parliamentary Committee, Malawi Energy Regulatory Authority  (Mera) chief executive officer, Henry Kachaje said the country is facing fuel and forex shortage situation because it has not doubled generation of forex despite demand for forex going up.
Kachaje said for fuel alone, the country needs $600million per year but tobacco, which is the major forex earner for the country, only brings in about $200 million.
He said the country needs to have a conversation on how it will double forex generation.
He said without doubling forex generation any measures being put in place are just cosmetic. He said borrowing is not a solution as at the end will still need to pay back and at the end, the country will still be under pressure.
The Joint Parliamentary Committee comprises of committees on Natural Resources and Climate change , Statutory Corporations, Transport and Trade, Industry and Tourism.
On Saturday the committee met officials from Ministry of Energy, National Oil Company of Malawi (NOCMA),  Malawi Energy Regulatory Authority, Petroleum Importers Limited (PIL) and Mount Meru and other stakeholders in the fuel sector to discuss fuel challenges that the country is facing.

Follow and Subscribe Nyasa TV :

Sharing is caring!

Follow us in Twitter
Read previous post:
MDF to take charge of fuel distribution exercise if truck drivers go on strike

Government is assuring the nation that there will not be the disruption of fuel transportation on Monday as the Malawi...