An investment company principle notes that the exchange rate could reach 12 to 12.5 in the second to third quarters of the year.
Lulumbi Njeleka of Two Nine group has attributed this to the dwindling of the Bank of Zambia foreign reserves.
He says this was expected because the country has not been exporting enough copper and due to the pressure from repaying the Eurobonds.
Mr. Nkelaka says this can be mitigated if the country were to export more copper or boosting the agriculture sector to increase the exports.
The Central bank disclosed that debt servicing costs are putting pressure on the central bank reserves and other aspects of the economy during the Monetary Policy announcement for the first quarter of 2019.
Bank of Zambia (BOZ) Governor Dr. Denny Kalyalya says the international reserves declined from $163 billion (1.9 months of import cover) to $1.5 billion (representing 1.8 months of import cover) recorded at the end of September 2018.

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