The visionless PF government is considering reintroducing regulations to make the kwacha the country’s only legal tender, treasury official Fredson Yamba said on Wednesday.
The PF has often blamed the weakening of its currency on the tendency of businesses to price their products in dollars, and it banned the practice in 2012, only to lift the restrictions again in March 2014. Now they will bring it again????
This year the kwacha has shed more than 40 percent in value against the dollar mainly due to severe electricity shortages , government mining regulations that spooked investors and a bit fall in global copper prices. But China says it has not reduced mineral imports from Zambia, a statement the Zambia government has failed to challenge.
“The government is considering the re-introduction of currency regulations whose principle objective is to reinforce the kwacha as legal tender in the nation,” Yamba said in a statement.
The other objective of such a move would be to ensure effectiveness in the conduct of monetary policy, which is aimed at ensuring price stability, he said.