Business Headlines

Kwacha listing to push status

ESTHER MSETEKA, Lusaka
FINANCIAL analysts say the listing of the Kwacha on the South African Stock Exchange (JSE) saying this will enable the local currency improve its marketing status and guaranteed future price for specific commodity.
Maambo Hamaundu and Beatrice Nkanza said in separate interviews on Monday that the development is good for Zambia.
Mr Hamaundu, however, said registering of the Kwacha on the JSE bourse will not really have a significant impact on the economy but, will help make the local currency become quotable.
He said the development will help advertise the country as foreigners will know about the Kwacha and generally what Zambia has to offer.
“The listing of the Kwacha will help in marketing the local currency. The marketing element will bring some pride and status to our Kwacha, people will start talking about Zambia and then we will benefit through foreign direct investment (FDI),” he said.
On whether the listing of the local unit will in any way help control the fluctuation of the Kwacha, Mr Hamaundu said the development will not necessary cushion the Kwacha from instability.
“What will protect the Kwacha from fluctuation is having a credible economy and a stable supply and demand of the local currency,” he said.
Commenting on the development, Mrs Nkanza who is former Lusaka Stock Exchange chief executive officer said listing of the Kwacha will help traders globally to have a guaranteed future price for specific commodity.
Mrs Nkanza said depending on the strength of the Kwacha, it may slow down or push up the economy.
She said there is need for Zambia to concentrate more on manufacturing and avoid being a consuming nation as this has a negative impact on the local currency and economy.
“[It] is a good thing, what we need to do as a country is strengthening our manufacturing sector and widening the export base.
“This is a contractual opportunity for people who are trading in Zambia to take a position on the Kwacha rate in whatever currency,” citing the United States dollars, Chinese yen, Indian rupee and the euro saying people will be able to trade on the market.

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