• More exports encourages foreign currency to come
• Need to have the country’s reserve cover improved to about 6 months.
• We need to export more than we are importing more.”
A Financial Expert has called on the manufacturing and agriculture industries to increase the country’s exports in a bid to have the Zambian Kwacha strengthened against other major major convertible currencies.
Kingford Kalobi told Money FM News in an interview that the more exports encourages foreign currency to come in compared to imports where much of the foreign currency is spent.
Mr. Kalobi noted on need to have the country’s reserve cover improved to about 6 months or more from 3 months.
He said the current reserves are quite comfortable at the moment.
“When you look at our foreign exchange movements it has to do with our reserves as well,” Mr. Kalobi said.
He explained that the foreign currency movement on whether the Kwacha is gaining strength or becoming weaker “has to do with our balance of payment, we need to export more than we are importing more.”
Mr. Kalobi had since stated that as long as Zambia is country that imports more, and buying the foreign currency “then we are making our currency weaker and weaker.”
With the Financial indicators as at 19th April 2022, the US Dollar was buying at Seventeen Kwacha Twenty Five Ngwee and selling at Seventeen Kwacha Fifty Eight Ngwee.