By ANDREW PHIRI –
CITI Bank Africa economist David Cowan has predicted that the Zambian Kwacha will remain under pressure due to continued external shocks in the global economy.
Mr Cowan said that copper prices on the international market had remained low which ultimately exerted pressure on the local currency.
He said all currencies globally and not only the Kwacha were under extreme pressure against the United States dollar.
Mr Cowan was speaking in Livingstone on Thursday night during a Citi Bank interaction cocktail.
He said inflation in the country was unlikely to drop at any time soon adding that there was a possibility of it increasing by the end of 2015.
He said the fiscal deficit was quite wide forcing the Bank of Zambia (BOZ) to run a tight monetary policy compounded by external factors causing additional problems.
Mr Cowan, however, said not all hope was lost for the Zambian economy to recover but was quick to mention that with elections coming next year, politicians would be more forecast on winning elections and very little attention would be paid to the economy.
