Business

Kwacha expected to appreciate

NOMSA NKANA, Lusaka
THE country’s trade surplus recorded last month is expected to boost further appreciation and stabilisation of the Kwacha due to increase in foreign exchange from exports, the Economic Association of Zambia (EAZ) says.

Zambia recorded a trade surplus valued at K410.6 million in July after about two years of being in deficits as the inflation rate dropped further to 6.3 percent

EAZ national secretary Herryman Moono said a stronger Kwacha will make imports cheaper for a country like Zambia.
“Furthermore, an appreciating exchange rate will reduce inflation which will see further stability in the single digit rate,” Mr Moono said in response to a press query.
He said a lower inflation has an economic welfare of reducing costs of living if sustained.
“A lower inflation, when factored in the cost of finance will likely see reduction in the costs of finance which is important for private sector growth,” he said.

 

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