PROPOSAL TO CHANGE CURRENCY AS A MEASURE TO ADDRESS DEPRECIATION OF KWACHA OPPOSED
Economist Kampamba Shula has opposed proposals by some stakeholders for Zambia to change its currency on allegations that some people could be holding on to huge sums of money resulting in the continued depreciation of the kwacha.
In an interview with Phoenix News, Mr. Shula however has proposed that the bank of Zambia tries to use other monetary policy mechanism tools such as the copper and gold bank reserves.
Mr. Shula explains that this can be done by engaging Zimbabwe and Democratic Republic of Congo in forming the metal exchange where they would be able to sell and determine their own metal prices which would be sold directly to other countries.
He says this will enable the three countries to balance their metal prices and eventually balance their currencies which are heavily affected due to the imbalance in sale of their metals as they have to do in Switzerland for copper and London Metal Exchange for gold.
Some stakeholders who include the Zambia Institute of Policy Analysis and Research -ZIPAR executive director Herrick Mpuku have suggested that Zambia changes its currency owing to the depreciation of the kwacha.
PHOENIX NEWS
Shula is mad and not worth listening to. Currency change is the only logical action in the current circumstances. Its easy to implement, cheap, not complicated and has been tested elsewhere before.
The idyot is suggesting collaboration with Congo and Zimbabwe both countries with serious economic problems and using trial and error methods of managing their currencies.
Please Shula, we don’t want to be like Zimbabwe or Congo. Use your commonsense and stop hallucinating. Besides you don’t even have the experience and qualifications in currency management!