Kwacha depreciation due to adverse global economic changes – PMRCTHE

Policy Monitoring and Research Centre (PMRC) has attributed the depreciation of the kwacha to adverse changes in the global economy witnessed in the last six months.

PMRC executive director Bernadette Deka said the changes in the global economy had affected global commodity prices for oil and copper among other things.

Ms Deka said Zambia’s economy had not been spared from these negative fluctuations, which she said had resulted in the depreciation of the Kwacha.

She explained that the reduced copper prices, power deficits and continued depreciation of the Kwacha have had an adverse effect on citizen’s livelihoods and the general cost of living.

And Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) general secretary Chingati Msiska has called on Government to immediately address the depreciation of the kwacha against major foreign currencies. Mr. Chingati said Government should implement long term corrective measures which shall restore confidence in the Zambian economy.

And Mr Msiska has called on the opposition political parties to give serious alternative measures to Government and avoid criticizing for the sake of gaining political mileage.

He said Government should not just focus on the short term mechanisms to stabilize the kwacha and that there was need for Government to re-evaluate the strategies.

Mr Msiska said the confidence levels in the economy were low and that this would cost the country valuable investment and development opportunities.

Meanwhile National Restoration Party (NAREP) Youths have attributed the depreciation of the kwacha to the mushrooming of multi-national shops.

NAREP Youth Vice chairperson for Administration Ezra Ngulube says most multinational shops were importing their goods hence the depreciation of the kwacha against other foreign currencies

Mr Ngulube has since advised Government to encourage multinational shops to take advantage of the local products in order to cushion the depreciation of the kwacha.