A Lusaka based Business and Financial Analyst has observed that the stability of the Kwacha in recent months has been necessitated by money flowing into Zambia from the Western World and the slowing global economic environment.
Munyumba Mutwale of Vennex Capital Zambia says America, the UK and Asia are currently sitting in excess money which that have no option but to invest it into emerging markets.
Mr. Mutwale says Zambia has been one of the emerging markets benefiting from the excess cash flow because the country has some of the highest Bond yields, but says the extra money is running out and the situation is expected to go back to normal.
He adds that the slowing global economic environment has also increased the internal demand and competition for the Kwacha due to increased economic activities leading to the domestic economy growing fast.
Mr. Mutwale says this is while there is a slowdown on import and export, which he says is only naturals as modern businesses are careful not to make decisions contrary to industry activities.
The Financial Analyst notes that Zambia has become a little more competitive because of increased domestic competition over the last 8 to 9 years.
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