ZAMBIA AMONG TOP FIVE AFRICAN COUNTRIES WITH STRONGEST CURRENCIES BUT KWACHA GAINS WON’T EASE COST OF LIVING IMMEDIATELY

ZAMBIA AMONG TOP FIVE AFRICAN COUNTRIES WITH STRONGEST CURRENCIES BUT KWACHA GAINS WON’T EASE COST OF LIVING IMMEDIATELY

By: Thomas Afroman Mwale

Economist Yusuf Dodia has revealed that Zambia is currently ranked among the top five African countries with the most valued currencies but cautioned that the recent appreciation of the Kwacha will not immediately result in reduced commodity prices or a lower cost of living.

Speaking in an interview with Sun FM TV News, Mr. Dodia explained that the Kwacha, now trading at around K22 against major convertible currencies, is performing on par with those of Morocco and Tunisia.

He attributed this performance to Zambia’s improved export trafficking framework, which he believes has significantly boosted export earnings  from copper thereby strengthening the economy estimating that nearly $50 million  in daily copper exports has played a major role in the Kwacha’s appreciation.

Mr. Dodia  noted that while inflation and interest rates may decline, commodity prices are unlikely to drop as expected stating the high cost of doing business coupled by the ongoing load shedding is impacting manufacturers and producers negatively.

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