The Private Sector Development Association (PSDA) has called on the Bank of Zambia (BoZ) to restrict regulations on the banking sector to reduce speculations on the money market.
Association Chairperson Yusuf Dodia has hinted that loose regulation in the Banking sector has lead to high inflation and interest rates on the money market, adding that this has also contributed to the depreciation of the local currency.
Mr. Dodia explained that strict regulations are the only solution of protecting the local currency from further deprecation.
“The Bank of Zambia has to come up with very strict regulations on the banking sector if our local kwacha has to be protected from further depreciation,” he said.
Mr. Dodia has also urged Banks in the country to offer better products to attract more customers in the private sector.
He explained that Banks can play a role towards private sector development if only they provide better products and services for their clients.
Meanwhile Mr. Dodia has charged that the continued deprecation of the kwacha has negative effects on the cost of doing business in the country.
He said the recent depreciation of the local currency is also likely to affect the economic growth of the country as many businesses are closing down.
He explained that due to the drop of the kwacha importing has become expensive for business people as they are now paying twice for goods ordered in other currencies.
The PSDA Chairperson has however, challenged business people in the country to diversify their way of doing business if they are to survive in this time of the global economic recession.
He further added that there is need for people in the private sector to continue contributing to economic development of the country by sourcing for alternative markets for the products and services.
ZANIS/MM/AM/ENDS