The Reserve Bank of Malawi (RBM) will next month start processing and selling the gold it has been buying in the country.
RBM Director [Public Relations] Ralph Tseka said revenue from the commodity will help in raking forex for the country.
He said this on the sidelines of a capacity building workshop on monetary policy communication for journalists in Salima District over the weekend.
According to https://goldprice.org/ as of April 25, 2022 the price of gold per kg was $61,593.44.
This means that the country could earn $6,159,344.00 (about K5 billion) if it sells the 100 kg of gold.
According to a monthly economic review report for the month of February, published by the RBM, the country’s total economy foreign exchange reserves decreased to $792.6 million (about 3.2 months of imports) as at end February 2022 from $824.5 million (about 3.3 months of imports) recorded in the preceding month
Tseka said the central bank was looking at securing 100Kg of gold which will be attained soon before processing of the commodity commences.
“We are still buying gold; our idea now is that when we reach the 100kg mark, we will send the gold for processing into gold bars and we will export those gold bars to Dubai or some other markets to start earning foreign exchange in about a month from now.
“We are also monitoring the international prices for gold so that we see how much we are going to earn from the gold that we already have vis-a-vis the Malawi Kwacha that we have already spent on the gold here,” Tseka said.
He said the intention is to send the gold to the Reserve Bank of Zimbabwe as they have a refinery to put it into gold bars.
However, the country continues to struggle with balance of payment issues owing to its huge appetite for imports against a weak export base.