Q FM Africa's Modern Radio
Former Finance Minister Katele Kalumba says a lot more boldness in line with President Edgar Lungu’s announced austerity measures should be exercised by the Central Bank.
Dr. Kalumba has urged the Bank of Zambia (BoZ) to also reanalyze its data on the Country’s money market and how it is behaving.
Katele Kalumba
He thinks that there is more that needs to be done not only with respect to inter-bank market rates and the speculative aspect in the economy, but also with respect to the holding of US dollars by the banks.
In an interview by telephone with Qfm News, Dr. Kalumba has expressed concern that instead of playing their intermediation role, banks in the Country are playing an extractive role.
Dr. Kalumba who served as Cabinet Minister under the Frederick Chiluba led MMD government notes that banks are using money to make money without producing anything.
He has suggested that this entails that the financial instruments in the banking sector need to be regulated a little more.
The Former Finance Minister states that the Central Bank should be allowed to prefect the banking sector a little than it is currently doing.
He has particularly cited the Bureau de change as one component of the sector that should be prefected more.
Dr. Kalumba has advised that this should be coupled with the Central Bank being forceful in curtailing pricing of goods and services in US Dollars.