Dear Editor.WE are deeply concerned with the fast pace at which the Zambian Kwacha has been depreciating against major convertible currencies, which is now trading at around K21 to the US Dollar and having breached the K20 psychological barrier barely three weeks ago.This scenario contrasts significantly with the fact that our major forex earner, copper, is trading at an all-time high of about US$7, 000 per metric tonne.One would therefore generally expect an influx of US Dollars in the economy and therefore a significant appreciation of the Kwacha, but this is not the case. The question is; why?Our belief is that the reasons for the Kwacha’s depreciation are several, but all manageable. The first major reason is Government’s failure to formulate and implement a policy that would compel mining companies to remit the gross proceeds of mineral sales back to Zambia and only be allowed to repatriate profits, as and when they are declared.Currently, the […]
Kwacha depreciation worrying
