- Says currency has demonstrated resilience, consistency over past year
MATHEWS KABAMBA
Kitwe
ECONOMICS Association of Zambia (EAZ) says the Kwacha is expected to remain relatively stable ahead of the August 13 general election.
This year, the Kwacha has been hailed as one of the bestperforming currencies in the world, but with the generalelection approaching, there are fears that the currency may suffer some shocks.
However, EAZ national secretary Nicholas Mainza has said in an interview yesterday that the currency has demonstrated resilience and consistency over the past year.
“It [the Kwacha] has managed to appreciate, it has managed to be resilient against the major foreign currencies…
it has been very resilient, it has been very sustainable, and it has been consistent in terms of trading against the US dollar,”
Mr Mainza said.
He said the relative stability of the Kwacha has improved planning conditions for households, businesses, and the broader economy compared to previous periods of high volatility.
“For individuals at household level, for the country at the national level, even for just entrepreneurs and entities at business level, it’s good for planning because you can anticipate how tomorrow is going to be,” Mr Mainza said.
Looking ahead to the election period, Mr Mainza cautioned that general elections naturally come with budgetary implications and can influence economic performance through what he described as internal shocks.
He explained that while external shocks such as geopolitical tensions remain beyond Zambia’s control, internal shocks such as elections can be managed through disciplined fiscal planning.
Mr Mainza called on Government and Bank of Zambia to consolidate the gains that have led to appreciation of the local currency.
He said Government should maintain adherence to approved budgets and strengthen fiscal discipline because deviations could create unnecessary
pressure on the currency.
Meanwhile, economic and financial expert Andrew Chibuye said in a separate interview that while the Kwacha could still experience movements, sharp fluctuations are unlikely in the short term.
“We’re not expecting dramatic volatility. The problem we have at the moment is what’s happening in the Middle East. It may appreciate, it may depreciate, but not
dramatically over a short period of time,” Mr Chibuye said….https://enews.daily-mail.co.zm/welcome/home
