MERCHANTS PRICING IN US DOLLAR PUTTING PRESSURE ON THE ECONOMY – BOZ
SPECIAL DUTIES Media.
By: G. Jeff HADENDA
Lusaka / 04.03.2024
Bank of Zambia is deeply concerned about some businesses QUOTING and PRICING their goods in US Dollars which they believe it’s putting pressure on the Economy and Exchange Rates.
However, the Zambian Economist who is currently the Governor of Bank of Zambia – Doctor Denny KALYALYA said, the Central Bank has resolved to deal with the problem.
“We were trying but we did NOT succeed…. one day we will, and actually, our resolve now is this quoting and pricing in Dollars is one of the things compromising the exchange rate.
Other Countries have taken measures to de-dollarise their Economies because when the merchants are pricing or asking to be paid in Dollars, you’re extremely putting pressure on the Dollar”, he said.
He also expressed serious concern over some people that are speculating about the performance of the Exchange Rate…. adding that the speculations have the huge potential to hurt the Exchange Rate market.
“When the Exchange Rate is moving, there are those people who ‘play’ the Exchange Rate; we call them the SPECULATORS. They play an important role but they can also overplay and hurt you.
So, we need to be deeply concerned about that and how we deal with that because what is happening is that, when the Exchange Rate is depreciating, people start getting the Kwacha and convert it into Foreign currency as a store of value, which means that demand is increased”, Doc KALYALYA said.
SPECIAL DUTIES Media.
MERCHANTS PRICING IN US DOLLAR PUTTING PRESSURE ON THE ECONOMY – BOZ
