Q FM Africa's Modern Radio
EAZ President Crispin Mphuka
The Economics Association of Zambia (EAZ) has observed that it is too early for austerity measures announced by President Edgar Lungu to have a positive bearing on the Kwacha.
EAZ President Crispin Mphuka says President Lungu has only signaled that there is commitment from the highest office to curb the budget deficit.
Dr. Mphuka notes that this could steer some confidence in the market considering that investors have also taken note of this.
He has told QFM News by telephone that considering that the period is too short for President Lungu’s pronouncements to help the Kwacha gain lost ground, he thinks there could some other interventions by Central Bank which have made the Kwacha post positive gains.
Dr. Mphuka however states that what is important is not for the Kwacha to continue appreciating but for it to stabilize at some point as it appreciates.
He states that a stabilized exchanged rate is what is good for planning, investments and exports.
Dr. Mphuka says much as interventions by the Central Bank are now paying off, his association still holds the view that in the long term what will stabilize the exchange rate is the expansion of the export base.
He states that there is no substitute for this as it is the only sure way of accruing income.