• Appreciation of the Kwacha is a good move in the right direction.
• The positive performance of the currency gives confidence to clients.
• The only challenge is that when the Kwacha goes down, clients immediately want prices of vehicles to be reduced.

The exchange rate is and remains Zambia’s most important economic indicator.
This is because Zambia is an importing country, therefore prices of various goods and services are determined by the exchange rate.
In the last few weeks, Zambia’s currency the Kwacha has maintained some level of stability, trading in the range of K16.18 ngwee to K16.49 per one US Dollar and other global convertible currencies.
The local unit has also been stronger than the South African Rand as the country imports most of its consumables form that country.
However, financial experts have warned that the country still remains vulnerable to external market dynamics that have a strong influence on the performance of the Kwacha such as the Russia-Ukraine war.
For Car Dealers Association of Zambia, the appreciation of the local unit is a step in the right direction for those in business and the country at large.
Association Secretary General Kelvin Kamita told Money FM News in an interview that the positive performance of the currency gives confidence to clients because they believe that when the Kwacha is appreciating, car dealers will reduce the price of vehicles on the local market.
Mr. Kamita however noted that the only challenge car dealers are currently facing is that customers want prices of vehicles to be reduced immediately, forgetting that the cars where imported into the country at a high rate.
“The appreciation of the Kwacha is a good move in the right direction for us and the nation at large and also for our clients. But the only challenge is that when the Kwacha goes down, our clients immediately want prices of our vehicles to be reduced, they forget that these vehicles came in before the Kwacha gained strength,” Mr. Kamita said.
Mr. Kamita stressed the need to ensure that the Kwacha remains stable for a long time in order to boost businesses for importers.
He further thanked government for making strides in stabilizing the local curr4ency as this is a good move for the business community and the country at large.
“We just need the currency to remain stable for a long time then it will be good for our business and the nation. Government is doing well they are trying all their best to bring the Kwacha down which is a good move for us in business.”
“We are hoping for the best from the government, but so far we are grateful as business people for the move they are making.
The Kwacha has opened the market trading at K16.18 ngwee and K16.49 per one US Dollar on the bid and offer respectively.