Exchange rate to remain stable-BoZ

BANK of Zambia (BoZ) governor Denny Kalyalya says the Central Bank is confident with the current exchange rate which is around K10 per dollar considering that the country is only 12 days away from the elections.

Dr Kalyalya told the media after touring the BoZ stand at the ongoing Agriculture and Commercial Show that the central bank did not expect the relative stability of the exchange rate during the election period.

“Given the political calendar we are following, I think it is a moment to feel confident. There are 12 days before the major elections and the exchange rate is still where it is.

“When you look at what has been happening in the economy from September to where we are now, we did not expect to have this relative stability. We have these cycles everybody is going through but this gives us confidence that going forward, the prospects are quite good,” he said. He said the economy would pull through unlike concerns that 2016 would be a bad year due to pressure on the exchange rate from September 2015.

On political violence, Dr Kalyalya said it was important to continue speaking against the vice as it was working against the fundamentals for investment.

He explained that investors were currently watching Zambia while adopting a wait and see stance, waiting for election results.

“Political violence certainly has an effect on the central bank because no one would want to invest in a country where there is violence. These are fundamental issues in our societies.

“It is 12 days before elections and these are not small elections. Everybody is watching and adopts a stance of wait and see. We need to continue speaking against violence because Zambia will remain even after August 11,” he said.

Categorized | Business

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