Finance Minister Margaret Mwanakatwe says the Central bank has not used the foreign exchange reserves to stabilise the kwacha.
Mrs. Mwanakatwe says the current trading price for the Kwacha is market driven.
She said this in parliament today following a question from members of Parliament who include Chinsali MP Kalalwe Mukosa during the question for oral answer session.
The local currency has been trading slightly below 12 Kwacha against one U.S dollar.
And Mrs. Mwanakatwe said the current statutory reserves stand at one point seven billion United States dollars translating into two months of import cover.
She however said the government will next year grow the reserves to three months of import cover and further expand it in 2020 to four months of import cover.
Meanwhile, the Minister of Finance has stressed that government will continue encouraging exporting companies including the mines to be offloading some of their dollar earnings onto the local market and help strengthen the kwacha.
Mrs. Mwanakatwe however stated that government has no immediate plans of regulating the foreign exchange market saying Zambia is a free market economy.