Q FM Africa's Modern Radio
Government has been advised to realize that the continued depreciation of the Kwacha provides a basis to reintroduce the revoked BoZ Statutory Instrument (SI) No. 55 of 2013.
The government is being advised to do so keeping in mind that any further interventions it will make through the Central Bank will only be short term.
Economic Analyst Yusuf Dodia says given the pace at which the Kwacha is deteriorating it requires that government put in place pro-active mechanism to ensure that the Country’s currency stabilizes.
Mr. Dodia has told Qfm News by telephone that this pro-active mechanism entails ensuring that all export earnings are brought back in the economy by being deposited in the Country’s banks.
Yusuf Dodia
He notes that this pro-active mechanism should therefore mean the reintroduction of the revoked BoZ SI No. 55 of 2013 which was called the Monitoring of Balance of Payments Regulations.
Mr. Dodia who is also Private Sector Development Association (PSDA) chairperson for fact that Zambia is already suffering the consequences of having revoked this mechanism time has now come for government to re-look at it and actually reintroduce it.
He notes that Zambia cannot continue being irresponsible by being the only Country in the World that allows exporters to export products and keep their revenue earnings abroad.
Mr. Dodia has particularly advised government to emulate the boldness that South Africa has undertaken by making it law that when something is exported between 30 to 90 days the earnings must be brought back in South Africa.
He says Zambia should thus consider such best practices and actually reintroduce the BoZ SI No. 55 of 2013.
Mr. Dodia is confident that if government reintroduces this legislation it will not only salvage the Kwacha but also strengthen the Zambian economy.
Meanwhile the Zambia Federation of Employers (ZFE) has also noted the need for government to put in place immediate drastic measures to salvage the Kwacha.
In a statement to Qfm News ZFE President Tyson Bruno Chisambo has observed the Country cannot afford letting the Kwacha continue depreciating in the manner it has been doing.
Mr Chisambo notes that the extent to which that the Country’s currency has depreciated has already brought business under threat for closure in Zambia.