BoZ moves to ease Kwacha speculation

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The Bank of Zambia has advised the public to desist from taking any speculative positions on the Kwacha, as this may result in heavy financial losses on their part when the Kwacha reverts to an equilibrium path that is consistent with economic fundamentals.

 

This comes in the wake of the Kwacha’s record depreciation against the US Dollar which has seen the local currency trading above K7.00 per dollar.

But in a statement issued to QFM Business News today, the Central bank says as the prospects for the global economy improves, the copper price has started going up reaching a high of US$6,952 per tonne on 28th May,2014.

The Bank of Zambia further says the supply of of foreign exchange to the interbank market has on average exceeded demand, while the central bank’s foreign exchange reserves position has improved significantly.

The statement further adds that following the disbursement of the Euro bond proceeds, the Bank of Zambia stands in an even stronger position to allow the economy to absorb any real economic shocks.

The Bank of Zambia has since assured the public that prospects for the Zambian economy remain positive and strong with growth expected to exceed 7% in 2014, while end of year inflation target has been maintained at 6.5%.

QFM Radio

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