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(LUSAKATIMES) Kwacha depreciation worries economist

Kwacha depreciation worries economist
TIME PUBLISHED - Wednesday, February 15, 2012, 6:14 pm

Renowned Economist Professor Oliver Saasa has called on government to consider putting in place mitigation measures aimed at strengthening the local currency, the Kwacha, which has been sliding against major foreign currencies.

Prof. Saasa said government, through the Bank of Zambia, should inject resources into the country’s economy from its reserves in order to stabilize the local currency.

He told ZANIS in an interview in Lusaka today that the loss of value which the Kwacha has recorded over the past few months has a negative effect on production and expansion of many sectors of the country’s economy.

He said this development threatens all the economic fundamentals of the currently hence the need to urgently institute measures against the sliding of the local currency.

Prof. Saasa attributed the depreciation of the Kwacha to the scarcity of the foreign exchange currencies such as United States dollar on the market.

He said the nervousness that characterized the investment market before and after the September 20, 2011 tripartite elections would also be a contributing factor.

The Zambian Kwacha has continued losing value against major currencies. The Kwacha has now gone beyond K5,200 against one US dollar.

According to the latest statistics released by the Bank of Zambia yesterday, February 14, one US dollar was now fetching between K5,245 and K5,265 while a Euro is now was selling at between K6, 904 and K6,932.

The Central bank figures showed that one British Pound was between K8, 244 and K8, 277 while the South African Rand was selling between K676 and K683.

According to the Central bank, one US Dollar was costing between K5, 136.89 and K5, 156.89; one British Pound was trading between K7, 947.28 and k7, 979.77 while the South African Rand was getting between K644.81and K647.73 about three weeks ago. The Euro was trading between K6, 633.78 and K6, 661.15.

ZANIS

Labels: KWACHA, OLIVER SAASA

posted by MrK @ 12:07 AM