Financial analysts have described as significant the recent gains made by the Kwacha against other major convertible foreign currencies. The analysts say the appreciation of the Kwacha against international currencies is a positive development which cannot be downplayed.
In an interview with ZANIS in Lusaka, Blessings Kafwanka says the appreciation of the Kwacha could improve the standard of living for Zambians.
Mr Kafwanka has since called on the diversification of the economy as a long term solution to the depreciation of the local currency,
He also called on Zambia to focus its efforts on becoming a mass export based country.
“We should diversify our economy from being over dependent on copper. We also need to ensure that we improve on our export base especially when it comes to none traditional items,
Meanwhile in a separate interview, Mambo Hamaundu also believes Zambia should move away from becoming a country that focuses heavily on imports.
Mr Hamaundu says while the appreciation of the kwacha is significant, the country needs to export more in order to have a stable exchange rate.
He said it is very cardinal to have an exchange rate that is predictable and not volatile.
He believes Zambia’s economy needs to improve on its productivity which will in turn change the country into not being highly dependent on imports.
“The appreciation is sitting on events, we have bond auctions, we have people who are uncertain about what will happen post-election period, they are converting their currency into kwacha, it is not sustainable,” he said.
The Kwacha has appreciated against the United States dollar to K21.39 as at 23rd July 2021 from K22.64 on 1st July 1, 2021
The Ministry of Finance has indicated that the continued stability, and the recent appreciation of the Kwacha against the United States dollar largely reflects changes in the supply of foreign exchange and broad improvements in market expectations.