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BLANTYRE - Malawi has sold gold from its international reserves and asked Afreximbank for a $120 million loan to fund fuel purchases, the Nation Publications media group reported on Wednesday, citing information minister Shadric Namalomba.
Namalomba said the Iran war had worsened a shortage of foreign exchange in the Southern African country. Fuel suppliers were demanding cash payments, he told the Nation.
The minister did not answer his phone when Reuters called seeking comment. A senior official in Namalomba's ministry answered and said he would respond later once he had verified the information.
"We have sold some of the gold that RBM (the Reserve Bank of Malawi) stocked and taken (a) portion of the forex from the sale of gold to pay $30 million so that we have fuel collected from the ports," the Nation quoted Namalomba as saying.
Namalomba said the government was expecting Afreximbank to release $120 million within a week to help ease stockouts.
Spokespeople for Malawi's central bank and Afreximbank also did not answer their phones.
Malawi has in recent years experienced frequent fuel shortages, and they were a major issue at last year's election. The situation had improved under President Peter Mutharika, who won September's vote, but the Iran war has seen snaking queues return at petrol stations.
The donor-dependent country hopes to secure a new support programme from the International Monetary Fund.





















