Now PF govt forces banks to sale Dollars cheaply to strengthen Kwacha

Now PF govt forces banks to sale Dollars cheaply to strengthen Kwacha

The truth is finally emerging on what is making the local currency Kwacha appreciate against major currencies in the absence of production in the country.

The currency control by way of banning of trading in hard currencies has resulted in the Kwacha strengthening as businesses changed their Dollars into Kwacha.

But now government has gone a step further by forcing commercial banks to sale the one US Dollar at K4, 500 and below.

Sources in one commercial bank have explained that there is pressure on banks to sale the Dollars cheaply so as to give the impression that the economy is doing fine.

But Banks are running into losses because they purchased the Dollars at high prices

Meanwhile whether fake or real, the kwacha has  hit its highest level in more than a year on Tuesday Commercial banks quoted the kwacha at 4,690/4,710 to the dollar at 1126 GMT, compared to Monday’s close of 4,775. It traded at a session high of 4, 640, its highest since April 2011.

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