– Says good rainfall season increased domestic agricultural output, reducing imports, strengthening trade balance
THERESA KALENGA
Lusaka
ECONOMIST Lubinda Haabazoka has attributed the recent Kwacha appreciation to increased foreign exchange supply, effective monetary policy, and improved agriculture performance.
In an interview, Dr Haabazoka said the Bank of Zambia (BoZ) contractionary monetary policy has reduced excess liquidity, stabilising inflationary pressures and supporting the Kwacha’s value.
Currently the Kwacha is buying around K26.29 and selling at K26.68.
Additionally, Dr Haabazoka said a good rainfall season has increased domestic agricultural output, reducing imports and strengthening the trade balance.
“The recent good rainfall season has led to increased domestic agricultural output. As a result, Zambia is importing less agricultural produce than in previous years, which has helped reduce the demand for foreign currency and strengthen the trade balance,” he said.
And while the Kwacha is expected to continue gaining into the third quarter, Dr Haabazoka warned that the local currency may come under pressure again during the festive season due to increased consumer imports and higher forex demand…https://enews.daily-mail.co.zm/welcome/home
