By JACKSON MAPAPAYIA FINANCIAL expert in Solwezi Dawson Kafwaya has the depreciation of the Kwacha has been affected by external borrowing because when paying back the debt, it is being done in dollars hence having increased demand on the market.He said due to high demand of the US dollar, it has resulted into a lot of kwacha on the market.“In short, the demand for the other currency is more than the demand for our kwacha and that is why we are seeing its continued depreciation against major currencies,” said Mr Kafwaya.He also mentioned that the trend is likely to continue due to the state of the economy.He has however proposed the need to increase exports to neighboring countries in order to gain more forex.He said open international markets will help increase exports which will result into a strong local currency.“And in the long run, you will see the dollar going down. It will not go […]
HIGH DEMAND FOR DOLLAR CAUSE OF DEPRECIATION
