Kelvin Chisanga’s timely advice: “
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Kwacha needs strong local policy backing to act as a ‘shifting spinner’ on dynamic local market trends!
…writes Kelvin Chisanga
The Kwacha is on a serious sinking spin, our native currency is under some strict pressure. Its high time that the country reflected on investing in its local content, in-country industrialization processes, and also objectively look at some motivating market driven-policies to boost productivity and advance the economy to higher heights but we will have to work on strengthening regulatory and legal framework in order to encourage local brand confidence amongst the Zambian citizenry.
Zambian Communications Specialist Kelvin Chisanga
The Kwacha’s devaluation has in the recent past augmented principally by the trade disparities that we are seeing being experienced, as characterized in both the imports and exports sector, in which we have horribly seen a grim drop-down of trade volume and growth value, and we have seen all these declines at the back of the existing economic reset owing to the challenges of the global pandemic of COVID-19 and compounded by country’s macroeconomic instabilities in the structural and fiscal policies.
In the interim, we are expected to see the market characterized by some speculations which will run in tandem with market forces, as most corporate buyers are almost on a wait and see, an existing model of market approach. The kwacha is projected to remain trading in a fragile position mainly due to the sustained demand for the Dollar, coupled with compressed participation mostly seen from the level of engagements by the sellers and exporters.
Going forward, I think there is a strong need for our Government and its cooperating stakeholders to generate into a scheme which can enable sound sustenance of the Kwacha by creating some sort of a ‘serving pot’ or a funding system to help mitigate all short term economic shocks, Kwacha seriously needs an inside moderating policy to avoid the local currency from easily getting impaired by the fall in the reserve currency on the local scene, this would, in turn, put some strong measured controls that would certainly circumvent overrunning of the inflationary plans, and could therefore equally be used to aid in maintaining of a sound pricing structure for most essential commodities on the local pricing index.
Rainbow Newspaper July August 2020 Edition 70
