Financial Analyst , Yusuf Dodia, has attributed the continued appreciation of the Kwacha against major convertible currencies to increased export earnings flowing into the country.
For the past three months, the Kwacha has steadily strengthened and is currently trading at around K23 to the US dollar.
Speaking in an interview with RCV News, Mr. Dodia expressed confidence that the currency’s performance is sustainable, as it is being driven by real export proceeds under the government’s Export Proceeds Tracking Framework.
“This means that businesses can now plan on a medium- to long-term basis, with the expectation that prices of commodities will begin to decline due to the strengthening of the Kwacha,” said Mr. Dodia.
He added that by the end of July, the positive trend is likely to result in noticeable reductions in the cost of goods and services.
Mr. Dodia emphasized that the Kwacha’s continued appreciation depends on the government’s commitment to maintaining the Export Proceeds Tracking Framework.
By Christabel Kamunu.
