Sunday, May 26, 2024

Malawi Pres. Chakwera says reserve bank will keep gold bullion not sell gold

Lazarus Chakwera

Malawi’s President, Lazarus Chakwera, addressed a query from Zomba Central MP Bester Awali during Wednesday’s parliamentary session regarding the government’s approach to gold sales aimed at bolstering forex reserves. Awali sought clarity on whether the gold would be sold raw or processed, and if processed, where the processing would occur.

In response, President Chakwera outlined his administration’s strategy. That noting the rampant illegal externalization of gold and the recognition of gold as a national asset, he directed the establishment of a regulated gold market to curb illegal activities.

Highlighting progress, Chakwera revealed that since the initiative’s inception, the Reserve Bank of Malawi (RBM) has procured 187 kgs of gold at a value of 19.2 billion kwacha, which is being refined into gold bars for inclusion in the nation’s official reserves. He emphasized that the gold would not be sold until market conditions were favorable, thereby enhancing the country’s forex reserves.

Furthermore, Chakwera clarified that the gold would undergo purification to achieve a 99.9 percent grade and would be stored as gold bullion by the Reserve Bank of Malawi. Regarding local processing, the President affirmed that the process was indeed taking place domestically, with a facility situated near Kamuzu International Airport.









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