Green party president Peter Sinkamba says the continued decline in the value of Kwacha can cause major financial difficulty to repay loans and finance deficits.
Mr. Sinkamba says financing the deficits could be extremely delayed or never bridged citing that it is imperative that State House keeps off Central Bank to undertake correct measures without focusing entirely on the value of its currency.
Mr. Sinkamba says otherwise the foreign exchange market intervention could potentially hurt the nations’ economy.
He adds that at this point, it is imperative that the Bank of Zambia lets forex market intervention be augmented by monetary policy intervention which may not disturb the economic growth and asset markets, and possibly stem decline of the currency’s value.
He further states that In order to maintain the value of the currency, there will need to elevate interest rates.