In a bid to boost the country’s foreign reserves, the Reserve Bank of Malawi (RBM) has reportedly purchased 200 kilograms of gold through the structured Gold Market initiative. According to President Chakwera, the RBM used MK9.4 billion for the purchase of the precious metal.
The move is expected to improve the country’s economy, which has been struggling due to a lack of foreign exchange. With the purchase, Malawi hopes to diversify its foreign reserves and reduce its dependence on traditional sources of foreign currency.
Additionally, President Chakwera has committed to establishing the Mining Regulatory Authority in the forthcoming fiscal year. This move is expected to bring sanity to the mining sector, which has faced several challenges, including illegal mining and environmental degradation.
The establishment of the Mining Regulatory Authority is expected to create a conducive environment for investors in the mining sector and improve the sector’s contribution to the country’s economy.
Overall, the purchase of gold by the RBM and the proposed establishment of the Mining Regulatory Authority are positive steps towards improving Malawi’s economic outlook. As the country continues to navigate through the challenges posed by the global pandemic, such initiatives are crucial in ensuring economic stability and growth.