FINANCIAL ANALYST ARGUES RANKING OF KWACHA AMONG AFRICA’S BEST CURRENCIES

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FINANCIAL ANALYST ARGUES RANKING OF KWACHA AMONG AFRICA’S BEST CURRENCIES

Financial Analyst Patrick Mwape has described as artificial and unsustainable, the ranking of Zambia’s kwacha among Africa’s best performing currencies.



The Zambian kwacha has rebounded in recent days and is now up by 0.30 percent year to date to rank among Africa’s best-performing currencies tracked by Bloomberg.

However, Mr. Mwape tells Phoenix News that there is no major economic activity that has been witnessed to trigger the appreciation of the local currency.

He says the Bank of Zambia, may have floated some dollars in circulation to cushion the further depreciation of the kwacha but says this measure is temporary.


Mr. Mwape says only increased production of goods and services will genuinely cause the appreciation of the kwacha as it will boost the country’s exports and revenue.



Last year, the Kwacha lost more than 8.0 percent and was ranked the sixth worst-performing African currency against the United States Dollar out of a basket of 23 currencies.

PN

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