Central Bank To Take Measures To Curb The Depreciating Kwacha – Denny Kalyalya

Bank of Zambia -BOZ- Governor DENNY KALYALYA

Bank of Zambia -BOZ- Governor DENNY KALYALYA says the Central Bank will take necessary measures to curb the depreciation of the kwacha.

Addressing the quarterly briefing in Lusaka this morning, Dr. KALYALYA says BOZ has already instituted measures such as Open Market Operations as part of the curbing process.

He says the Bank cannot rule out adjusting the reserve ratio from 14 percent among other measures that could help strengthen the currency.

Dr. DENNY KALYALYA has attributed the 19 percent depreciation of the kwacha in the last three months to a slump in copper prices on the international market and reduction in Non Traditional Exports.

He adds that foreign exchange supply by the mining sector has also fallen relatively to demand.

The BoZ Chief further says government’s infrastructure development projects in sectors such as health and education despite being good has led to higher budget deficits and increased demand for domestic foreign resources.

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