BY CYNTHIA NKHATA
Economic activist Kelvin Chisanga said it is okay for the bank of Zambia to maintain its monetary policy rate for three consecutive times in a row however, it is also key and paramount to note that the global economy has equally started to positively record in witnessing a gradual process in the volume of economic activities being undertaken after the seemingly improved market structures following some successful vaccination exercise against COVID-19.
Mr. Chisanga observed that Zambia’s second quarter performance was relatively poor but contained a substantial trade surplus which has remained firmly on export traditional sales.
“As always the case, the Zambian case of inflation has always largely rooted within the foreign exchange fundamentals which usually account for the biggest portion and the market intervention of USD 837.5 million has made a strong resurface models to the forex performance though it is not a wish for a liberal system within the market but it was necessary considering that we would have collapsed our local economy going-by the speed of inflation that was recorded in the recent months if only such tools were restricted to have been used, though my assertions have been that the intervention was supposed to be gradual process in order to see currency appreciation stability as too much money is equally not a good model,” Mr. Chisenga said.
He notes that the call now remains on the fiscal discipline which is likely to be seriously taken up by the new administration of the UPND government to try and implement some of the strategic objectives set towards achieving of restoration of the macroeconomic balance.
