19% depreciation of Kwacha in three months stuns Kalumba

Government has been advised against being complacent about the good economic fundamentals that are still prevailing despite the weakening of the Kwacha.

Former Finance Minister Katele Kalumba says the 19 percent depreciation of the Kwacha under a space of three months of 2015 entails that government needs to quickly arrest the volatile money market.

Dr. Kalumba has told Qfm News that if government does not act quickly, it might lead to negative expectations in the economy.

He says government through the Ministry of Finance and the Central Bank should in the short term do something with respect to the use of reserve ratios with the view of arresting anxiety in the money market.

Dr. Kalumba has suggested that it will also be necessary for government to consider having consultative meeting with key stakeholders in the economy in order that ideas can be brainstormed in the short term.

He says given the present scenario such meetings should be of high level to the extent that the Republican President himself should be the one to call them.

 

qfm news