The Africa Consumer Union (ACU) has observed that the trade surplus that has been recorded for the month of March 2019 is not reflective of the value of the local currency which is weakening.
ACU First Vice President Muyunda ililonga says the cost of living and commodity prices are still in the verge of an increase, no matter what figures show.
Zambia recorded a trade surplus of seven hundred and fifty four point Nine million kwacha in March from a trade deficit of Three hundred and nine million kwacha in February 2019.
Central Statistical Office (CSO) Acting Director for Census and Statistics Goodson Sinyenga says this is due to the increase in the value of exports recorded at Seven billion, seven hundred and seventy-three point four million kwacha.
The ACU First Vice President has also projected that if the trend continues, the local currency may reach K14 to K15 against the dollar by June, July respectively.
Mr. Ililonga notes that it will mostly affect the price of fuel leading to an increase in the prices of goods and services thereby by affecting the unemployed consumers mostly.
Meanwhile the Jesuit Centre for Theological Reflections (JCTR) has noted that this weakening of the local currency will increase the cost of imports and debt servicing.
JCTR Social and Economic Development Programs coordinator Chanda Chileshe says this is because the country will use even more Kwacha to purchase the dollar which it uses for imports and repaying external debt.
Mr. Chileshe was speaking in a telephone interview with Money FM news.