Kwacha depreciates by 19% in last three months

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The Bank of Zambia (BoZ) says the Kwacha has depreciated by 19 percent in the last three month from January to March 2015, which is higher than most exporting countries that have been affected by the drop in copper prices at the international market.

BoZ governor Denny Kalyalya has told a quarterly media briefing in Lusaka today that the fast pace at which the country’s currency has been depreciating in the last three months is of concern to the central bank.

Dr. Kalyalya however states that Zambia’s economy is still robust and there is still room for growth despite the prevailing economic challenges which he says are temporal.

He notes that it is on the other hand important that the country takes decisive measures to avoid allowing such temporal challenges culminate into long term problems that will be difficult to resolve.

The Central Bank Governor has referred to the impasse between government and the mines on the newly introduced Mineral Royalty Tax as one of the challenges that need to be addressed as soon as possible.

He says the central bank is anxious that this impasse is resolved in order that the negative sentiment coming the mines can be reserved.

And Dr. Kalyalya says the recent downgrading of the Zambian economy by Fitch comes as a call for the country to work at the problem that has been cited.

 

QFM News Zambia

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