Africa’s largest oil producer ought to be benefitting rising oil prices caused by the Russia/Ukraine conflict. But Nigeria has lost over $5.6bn ... in projected revenue since oil prices rose in late February.
The donor-dependent southern African country has been experiencing acute foreign currency shortages. Late last month it allowed its kwacha currency to weaken 25% against the dollar.
“The authorities have requested an arrangement (on) the back of the protracted balance of payments problem,” the IMF said in a statement after talks with Malawian government officials and private sector representatives.
The fund said restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves were pre-requisites for IMF support.
“While the authorities are addressing these issues, the IMF team conducted a mission to agree on (a) macroeconomic framework, policies and reforms,” it added.
The IMF said it welcomed the move to normalise the forex market and that Malawi’s authorities had engaged a debt advisor to support efforts to address unsustainable public debt.
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