By Ellen Hambuba
Finance and National Planning Minister SITUMBEKO MUSOKOTWANE says Zambia’s economy has recorded improvements, particularly in exchange rate performance and inflation stability.
Dr. MUSOKOTWANE says after periods of volatility in previous years, the economy has largely regained stability, bringing relief to businesses, consumers and investors.
He says the government remains focused on managing the exchange rate in a way that balances the needs of importers who depend on foreign currency and exporters who earn in dollars, noting that both are vital to sustained economic growth.
Dr. MUSOKOTWANE said this during a media briefing in Lusaka.
Meanwhile, Bank of Zambia –BOZ- Governor DENNY KALYALYA said all domestic transactions in Zambia will continue to be conducted in the local currency, the Kwacha.
Dr. KALYALYA said this position remains unchanged and is central to the country’s monetary policy, explaining that the use of foreign currencies for local trade weakens monetary policy effectiveness and increases pressure on foreign exchange demand.
He said foreign currency should only be used for external transactions, such as imports, and not for buying and selling goods and services within the country.
