TRYNESS MBALE, Lusaka
NATIONAL Restoration Party (NAREP) president Elias Chipimo says the Kwachaâ€™s poor performance can be helped by Government and stakeholders stating out a clear programme on how to promote Zambia as a country and its products.
However, on Friday, President Lungu provided guidance on monetary and fiscal policy measures designed to stabilise the market by directing the Ministry of Finance to closely monitor trade imbalances which are resulting in Kwacha depreciation.
Further, Government has released US$120 million on the market to arrest the Kwacha volatility.
Speaking Radio Phoenixâ€™s, â€œLet the people talk programmeâ€ earlier on Friday, Mr Chipimo said the promotion of Zambia will build confidence and in turn help boost the local unit.
â€œI call on all stake holders and set out clear plan of how either Government or we [Zambians] are going to promote Zambia and its productsâ€¦We need to build confidence.
Meanwhile, Zanaco Bank says the Kwacha is expected to continue to be weak in the near-term as a resolution to global and domestic economic concerns stays out of sight.
The local unit lost more ground against the United States (US) dollar on Thursday to lowest level due to a flight to the greenback as the markets feared further losses.
â€œHeadwinds against the Kwacha in the near term remain strong and should keep the Kwacha on the back foot as a resolution to global and domestic economic concerns stays out of sight,â€ the bank says in its daily treasury newsletter.
First National Bank (FNB) in its daily newsletter also says Governmentâ€™s confirmation that it will not intervene in the foreign exchange market and reintroduce exchange controls helped the Kwacha make slight gains on Thursday.
â€œThe currency will be left to run its course. There is, however, general consensus that the Kwacha is significantly undervalued as a result of its performance in the last few weeks. Even with the myriad of global and domestic woes, many players believe a fair level should be around dollar/Kwacha K8.00,â€ FNB says.
On the region, the Botswana pula was up to 10.531 on Friday from 10.443, Egyptian pound was at 7.82 and 7.87 while the South African rand was down to 13.647 and 13.576, according to the usd.fxexcahngerate.com.
TRYNESS MBALE, Lusaka