Business

‘Dependence on imports putting pressure on Kwacha’

Nakonde-border

NANCY MWAPE, Lusaka
ZAMBIA’s dependence on imports and the continued debt servicing are exerting pressure on the local unit and inflationary levels, says Absa Bank Zambia Plc.
Head of global marketing Stanley Tamele said financial players have noted considerable weakening of the exchange rate from K14 early this year to the current K20 to the United States (US) dollar.
“The Kwacha has significantly depreciated against the US dollar and the South African rand, which is our biggest trading partner. Some of the drivers that have affected currency movements include demand from energy [importation of fuel] and agriculture sector.
“The trade services have to be made in dollar using Kwacha receivables, and with the weakening currency, more Kwacha has to be made to buy dollars to import the goods,” Mr Tamele said during the two-day Absa Bank data master class held for journalists.
He said large suppliers of foreign exchange in the market are mining companies, accounting for 70 percent but have reduced due to CLICK TO READ MORE




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