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BoZ won’t tether galloping kwacha, says Kalyalya

DENNY Kalyalya.

ZAMBIA has no plans to re-introduce exchange rate controls as a measure to stabilise the kwacha, but that the country needs to increase on export products, the Bank of Zambia (BoZ) says.
BoZ governor Denny Kalyalya said the bank had no intentions of introducing exchange rate controls that governments put in place to ban or restrict the amount of foreign currency or local currency that is allowed to be traded or purchased.
“Exchange rate controls privileges a small group of people at the expense of others so we do not want to take that route… The scars of the exchange rate controls of the 1980’s have not even disappeared yet,” Dr Kalyalya told business community from various sectors of the economy on Friday.
He was responding to some stakeholders who wanted to know what measures the central bank is taking to curb the depreciation of the kwacha and if there were any plans of controlling the exchange rate.
Dr Kalyalya said the kwacha could stabilise in a sustained manner when the country produces more for export.
“Producing more goods for export is the surest way of curbing the current fluctuations of the exchange rate in the long-term,” he said.
The governor said it is importance for stakeholders to collaborate to ensure the country increase its exports and secure more foreign direct investments (FDIs) as a way of stabilising the local currency in the long-term as well as increasing investment portfolio.
Most stakeholders present at the meeting called for consistency in policies.
They said constant shift in policies eroded confidence and stability in the economic environment hence it was important for Government not to change policies that were working well.

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