Kwacha has demonstrated its stability – Yamba

Secretary to the Treasury Fredson Yamba

Secretary to the Treasury Fredson Yamba is optimistic that clarity in the national policy direction after the presidential by-election will certainly help the domestic economy and the Kwacha in particular, to rebound and attain stability levels against major foreign currencies, sooner than later.

Mr. Yamba says despite the overall depreciation recorded over the last few weeks, the Kwacha has generally demonstrated its overall stability and the resilience of the Zambian economy, by remaining within acceptable margins of variation and fluctuation.

Mr. Yamba in a statement availed to QFM News has affirmed that under similar circumstances, currencies of less resilient economies would have crumbled to shreds.

He adds that during the period the kwacha has been depreciating, the Bank of Zambia has been prudent by making interventions to smoothen out volatility in the forex market.

Mr. Yamba states that over the last few weeks, pockets of pressure on the local currency have continued due to the stronger international performance of the dollar; poor copper price outlook on world markets; and, speculative private sector decision-making associated with projection uncertainties due to the upcoming presidential elections.

Mr. Yamba states that like other commodities, the price of copper has continued its retreat thereby lowering enthusiasm on balance of payment expectations.

The exchange rate of the Kwacha against the dollar depreciated from K6.49 recorded on 6^th January to K6.55 yesterday.