By GRACE CHAILE LESOETSACONTRARY to Government pronouncements, the Kwacha is expected to grow weak and not stronger in 2022, Economist Yusuf Dodia has said.Mr Dodia said the recent increase in fuel prices as well as the expected 13 percent increase in electricity tariffs in the first quarter of the year, will have a direct impact on weakening the Kwacha.Speaking in an interview, Mr Dodia said 2021 ended with microeconomic indicators not having significantly changed with banking interest rates at about 30 to 35 percent.He said although the Kwacha did gain after the August 12 elections, the introduction of increased fuel prices is expected to weaken it.“The Kwacha is determined by positive economic development. This means the economy becoming bigger and more efficient. So any increase in fuel or energy prices has a direct impact on weakening the Kwacha. So really, electricity tariffs going up is part of the mechanism which makes the Kwacha weaker rather than stronger. We are likely […]
ECONOMIST CASTS DOUBT ON KWACHA
