BoZ to strike Kwacha balance


THE central bank will continue striking a balance to ensure stability because neither a strong Kwacha nor weaker local currency is good for the market and businesses, Bank of Zambia (BoZ) Governor Christopher Mvunga has said. And about US$25 million worth of gold has been bought by BoZ aimed at diversifying the country’s international gross reserves that are usually kept in United State dollars. Responding to questions after the monetary policy rate briefing on Wednesday as to why BoZ has not set a target range for the Kwacha to trade in like they do with the rate of inflation, Mr Mvunga said Zambia has a floating exchange rate system that is determined by market forces of demand and supply. “We can’t set exact range but the market will determine the rate it (Kwacha) will sit in. So we can’t bring it down to be equal to the paired currency since too CLICK TO READ MORE

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