NON AVAILABILITY OF FOREX FORCES COMMERCIAL BANKS’ FAILURE TO EXECUTE FOREX “SPOT”
By Chileshe Mwango
Commercial Banks are reported to be failing to execute Forex “Spot” contracts due to the unavailability of foreign exchange on the market; a development some technocrats believe will put further pressure on the exchange rate.
The banks are now said to be staggering the transaction over 3 to 4 weeks.
And the Bankers Association of Zambia says there is need for the economy to increase its capability of earning foreign currency as opposed to the consistent low supply being witnessed.
Association Chief Executive Officer Lenard Mwanza tells Phoenix Business News that this can be achieved through increased production as traditional sources and offshore investors have proven to be inadequate to change the status.
Mr. Mwanza explains that currently, there is high demand for forex on the market which banks are failing to meet thereby creating a long pipeline demand.
PHOENIX FM NEWS