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Kwacha gain good but…

ECONOMIST Oliver Saasa says the current stabilisation of the Kwacha will create a positive business environment and reduce the cost of doing business.
Professor Saasa (left) also said to strengthen the Kwacha, there is need to explore other sectors of the economy which can bring in the much-needed foreign exchange.
In an interview with the Sunday Mail, Prof Saasa said the current intervention by the central bank to stabilise the performance of the Kwacha is a short-term measure.
He said the long-term measure would be diversification of the economy, among others, as this will bring about permanent solutions.
Prof Saasa added that permanent measures that would revamp the economy lie in Government’s ability to expand production and the creation of policies that favour investment.
He said the central bank cannot continually stabilise recovery of the Kwacha through short-term interventions.
He said reliance on one commodity such as copper has huge ramifications such as what the country is going through. Prices of copper, the country’s main foreign exchange earner, have plummeted to below US$5,000.
Professor Saasa said Zambia should seriously consider looking beyond copper whose price has been fluctuating on the world market.
After falling to an all-time low, the Kwacha on Friday significantly gained strength against other major convertible currencies with the local unit trading around 11.7 to the United States dollar from an average of K12.7 on Thursday.

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