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BoZ Moves To Ease Kwacha Speculation
The Bank of Zambia has advised the public to desist from taking any speculative positions on the Kwacha, as this may result in heavy financial losses on their part when the Kwacha reverts to an equilibrium path that is consistent with economic fundamentals.
This comes in the wake of the Kwacha’s record depreciation against the US Dollar which has seen the local currency trading above K7.00 per dollar.
But in a statement issued to QFM Business News today, the Central bank says as the prospects for the global economy improves, the copper price has started going up reaching a high of US$6,952 per tonne on 28th May,2014.
The Bank of Zambia further says the supply of of foreign exchange to the interbank market has on average exceeded demand, while the central bank’s foreign exchange reserves position has improved significantly.
The statement further adds that following the disbursement of the Euro bond proceeds, the Bank of Zambia stands in an even stronger position to allow the economy to absorb any real economic shocks.
The Bank of Zambia has since assured the public that prospects for the Zambian economy remain positive and strong with growth expected to exceed 7% in 2014, while end of year inflation target has been maintained at 6.5%.
Posted by Editor
on May 30, 2014. Filed under LATEST NEWS.
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mj banda
May 30, 2014 at 2:58 pm
Sata is in big problem, here he falls, there is the kwacha and that side its destroying the economy
Economic Advisor
May 30, 2014 at 3:27 pm
The problem is you pipo who are ignorant about Economics talk nokkunyaa saana muleikalafyee ok men
sifunthe the russian trained economist
May 30, 2014 at 4:02 pm
way back in the 1960s,the K1.00 was equivalent to $1.00 even better than this as sometimes our positive gains are overlooked by the westerners.From that time to date, the trend has been a disproportionate increase which has not been reversed by any leader.Therefore,to apportion blame is just folly.As long as the Kwacha is in circulation we are ok. Let us compare it with the availability of foodstuffs in the country and not the currency $ which is America driven.
ChiKA
May 30, 2014 at 5:58 pm
Poor policies and lack of determination by our ministers is what has killed our economy. In the previous regime (MMD) we had ministers who were able to articulate issues and come up with solutions, Alas! PF has doomed us all, all they talk about is Mr Sata and unfulfilled campaign promises.