An Economist says the Kwacha is this week expected to continue losing strength against the US dollar as was the case last week.

Shabdin Mweemba told Money FM News in an interview that this has been as a result of the reduced policy rate that increases money Supply and government’s plans to release money to Small and Medium Enterprises (SMEs) and other sectors for investment.

“If you check from the beginning of last week to Friday, the Kwacha has been losing against the Dollar.”

Mr. Mweemba, however, said until the time different sectors of the economy start exporting, the local currency will continue being unstable.

“Because of some investment that people are doing, they’ll come a time where we will start exporting until then the Kwacha will continue being unstable,” he said.

As of the first week of June, the US Dollar closed buying at Eighteen Kwacha Ten Ngwee and selling at Eighteen Kwacha Forty Four Ngwee, and later in the second week opened the market buying at Eighteen Kwacha Twelve Ngwee and selling at Eighteen Kwacha Forty Seven Ngwee.