• The local unit is also likely to respond to high copper prices on the international market.
• Factors that have contributed to the depreciation of the currency are the increased demand for the Kwacha by the mines.
• There is need to start exporting more

An Economist says the Kwacha is expected to stabilize in the last quarter of the year when mining firms start meeting their tax obligations.
Speaking in an interview with Money FM News, Rita Mkandawire noted that factors that have contributed to the depreciation of the currency are the increased demand for the Kwacha by the mines to pay their taxes.
Ms. Mkandawire said the local unit is also likely to respond to high copper prices on the international market currently trading around US$8, 400 per tonne.
She however wondered why the country has never benefited from the positive copper prices, yet it is so dependent on the commodity.
“We are projecting that the Kwacha will stabilize in the last quarter of the year, but we see that we are getting back to even a higher depreciation, so factors that contributed to the depreciation of the Kwacha were the increased demand for Kwacha because the mines had paid their taxes, and we will only see that result in the next quarter when making the payments.”
“Then also Copper prices have gone up, there must be at US$8, 400 per tonne now, so even that, kind of stabilizes the value of the Kwacha. I’m not just so sure why as a country we have never benefited from the positive copper prices, that has never happened, yet we are so dependent on copper,” Ms. Mkandawire stated.
And Ms. Mkandawire said there is need to start exporting more by identifying what portion of exports must be increased and what should remain in the country to enhance food security.
“I think we also need to look at other sectors like Agriculture, we need to start exporting more, though we try to export maize and there are these challenges that the country is facing.”
“So we need to plan what portion of exports we need to increase on and what remains in the country to protect our food security, we just don’t need to depend on the copper,” she said.
The US Dollar is currently buying at Eighteen Kwacha Seventy Six Ngwee and selling at Nineteen Kwacha Thirteen Ngwee.