By CHARITY MOONGA –
BANK of Zambia Governor Denny Kalyalya has said there is need for diversified sources of foreign exchange in the country to enhance the value of the local currency.
Dr Kalyalya said this could only be possible through economic diversification which was the only way of attracting more foreign exchange into the country to prevent the free-fall of the Kwacha.
He said the prices of copper on the international market had dropped in the recent past, hence affecting the Kwacha.
Dr Kalyalya said it was important for the country to diversify into other economic activities to boost trade and foreign exchange earnings.
He was speaking to journalists in Lusaka yesterday at the Africa regional training workshop on advances in econometrics versus policy challenges.
“We haven’t had much foreign exchange inflows. You saw what happened, the Euro zone was engulfed with problems. The price of copper went down and all these factors led to the drop in foreign exchange.
“Sources of forex must be diversified in order to assist strengthen the Kwacha,” he said.
Dr Kalyalya was hopeful that the on-going changes in Europe would enhance the prices of copper so that it picks up and provide the country with more foreign exchange and strengthen the Kwacha.