A Financial Analyst says the decline in Zambia’s foreign reserves from US$1.63 billion to US$1.57 billion is a serious financial concern.
Bank of Zambia Governor Dr. Denny Kalyalya has disclosed that gross international reserves declined to US$1.57 billion representing 1.8 months of import cover from US$1.63 billion representing 1.9 months of import cover recorded at end of September 2018.
Dr. Kalyalya has said external debt service payments are the primary drivers of the drawdown in international reserves.
But Mambo Hamaundu has told Money FM News in an interview that the reduction in the country’s foreign reserves is a wakeup call for the Central Bank to access the reasons leading to the reduction in reserves.
Mr. Hamaundu says the decline in reserves can only be revised if the cause of the matter is known.
He says the decline in international reserves can be confirmed by the fluctuating of the local currency which has remained weak against major convertible currencies for a long time.
He says the reduction in the reserves must allow the central bank to critically assess the economy by taking time to find out if the performance of business and if government is creating jobs.