BoZ explains Kwacha drop

INCREASED demand for the United States (US) dollar to meet imports of health supplies, agricultural inputs and debt servicing has continued to put pressure on the Kwacha, with the central bank pledging to rescue the local unit from further depreciation.
The local unit has between mid-August and Monday September 14 depreciated by eight percent to K19.81 per dollar from K18.34.
In an update on the developments in the foreign exchange market issued yesterday by the Bank of Zambia (BoZ) communications department, there has been high demand for the greenback escalated by the need for supplies to address the coronavirus, buying petroleum and clearance of arrears.
“This elevated demand [for the dollar] is in addition to continued debt service payments that present the largest call on international reserves,” the statement read.
The central bank said the demand has outraced the low United States dollar supply from the mining companies and CLICK TO READ MORE

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