By DORCAS PHIRI
ECONOMIST Trevor Hambayi has urged the Central Bank to invest in short term measures such as imposing exchange controls in order to cushion the current rapid depreciation of the kwacha.
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Commenting on Bank of Zambia-BOZ’s decision to increase the statutory reserve ratio from 17 to 26 percent, Mr Hambayi says this implemented measure is not working because it continues to put pressure on the financial institutions and contracts economic growth of the country.
He adds that this method by BOZ will put pressure on exchange rate and the kwacha will continue to depreciate.
The Economist advises the Central Bank to implement long term measures like working to grow the Gross Development Product-GDP in order to obtain a positive trade balance to deal with the instability of the foreign exchange rate.
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