THE tightening of the US dollar as well as the Kwacha by the Bank of Zambia (BOZ) is a good measure as it will prevent the further skyrocketing of prices of goods and services and it has stabilized the economy, Bankers Association of Zambia (BAZ) chief executive officer Leonard Mwanza has said.
Mr Mwanza called for a lasting solution to make the local currency compete favourably with other convertibles as the monetary policy of the BoZ has constrained the liquidity of commercial banks.
He said commercial banks were faced with a challenge of not giving out bank loans as well as delay to give their customers foreign currency.
“Commercial banks are faced with a challenge of serving customers promptly as most of them have to wait for a few hours, in some cases it can take a day for us to exchange convertibles and the failure to give out bank loans,” Mr Mwanza said.
Mr Mwanza said Zambia was a free market economy that worked on the law of demand and supply but he commended the BoZ for taking the tough monetary measure, observing that even the BoZ governor had clarified that this was a short term measure, hence there was need to come up with a long-lasting solution.
Mr Mwanza said the tightening of major convertibles and the Kwacha had stabilized the economy as it has prevented the likelihood of inflation which would make Zambians suffer economic hardship. He said the (BoZ) monetary measure was meant to benefit more people as it had made the Kwacha more predictable and stable and creating a more favourable economic atmosphere to do business.