Zambia Consumer Association, ZACA, has welcomed government plans to enact a legislation that will help discourage dollarisation in all domestic transactions.
ZACA Executive Secretary, Muyunda Ililonga, told ZANIS in an interview today that the association was happy that government responded positively to calls for legislation to discourage business houses from quoting prices of goods and services in foreign currency.
Mr. Ililonga said the current trend where most goods and services were being priced using the value of the US dollar subjected the consumers to exploitation.
Mr. Ililonga noted that dollarisation of domestic transactions should be discouraged at all costs as it undermines the dignity of the kwacha.
He said there was need for the dignity of the local currency to be upheld in all the domestic transaction as opposed to the current situation where the dollar was being used to quote prices whenever the Kwacha depreciated against the world’s major currencies.
He further said Zambia was a sovereign state which could not allow the alien currencies such as the dollar to determine and influence its domestic market forces.
Government announced on Wednesday that it would introduce a legislation that would stop dollarisation in the country.
The quoting of the dollar in domestic transactions is said to have influence on the current exchange rate which has seen the kwacha lose its strength against the major currencies.
ZANIS/ENDS/MP/SJK.
Good move. We must work harder towards strenthening the Kwacha instead of bending our laws to siut the dollar.
There is no need for legislation of such magnitude to stabilise the currency. The BOZ has policies which are viable in the stability of the kwacha and does not need government legislation. The mine suppliers who quote in dollars ot the foreign currencies just safe-guard their interests in that they import their goods and would be making loses if they were quoting in kwacha due to the abnormal flactuation. Leave the monetary policies to the central bank.
I don’t blame the companies quoting in dollars as the are just passing on the real value of products to the customer. Mind you most of the things in Zambia are imported. If the are manufactured in Zed the better route will be the Kwacha.
Zambia must also look at the possibility of Western Union paying local beneficiaries in foreign currency as this will improve foreign reserves which will strengthen the Kwacha. Other countries in Africa are doing it bane.
Good posting and observation. Few people will realise how much revenue Zambia would gain from this venture. Zambia doesnt need to change the Kwacha. Look at U.k., they didnt change the Pound when Euro was introduced.
IT IS TRUE EVEN WOMEN AT MARKETS ARE ALSO SELLING TOMATO IN FOREIGN CURRENCY.
For as long as we ramain an import oriented economy, the $$$$ will rule, unless of course, when trading with Mad Mugabe.