KWACHA MAY DEPRECIATE TO K35 BY DECEMBER IF NO ALTERNATIVE MEASURES ARE IMPLEMENTED
By Michael Kaluba
Green Party Leader Peter Sinkamba has warned that the kwacha will rise to K35 to a dollar by the end of the year as anticipated by several international markets if Zambia does not move soon to implement the sugilite, gold mining, and cannabis cultivation.
Mr. Sinkamba tells Phoenix News that it is evident that Bank of Zambia interventions have so far failed to produce beneficial outcomes, with the kwacha currently trading at more than K27 per dollar.
He believes that removing money from entrepreneurs through the ongoing central bank fiscal measures will lead to the collapse of banks, arguing that these actions are unsustainable.
According to the Green Party Leader, the weakening currency rate is due to the country’s export portfolio, which has continued to lag, due to challenges in the mining sector.
He argues that with KCM still non-operational while Vedanta looks for capital and Mopani taking a phased approach to liquidation, production will continue to hurt the exchange rate.