By JAMES KUNDA –
THE Zambia Consumer Association (ZACA) has predicted that the removal of Statutory Instrument (SI) 33 of 2012,  will help to stabilise commodity prices because goods will now be quoted in different currencies other than the Kwacha alone.
ZACA acting executive director Samuel Simutunda said the move to revoke the SI  would open up the market to the use of additional currencies other than the Kwacha, making consumer goods and services much cheaper.
Mr Simutunda said the revocation of SI 33, which has already brought some stability to the kwacha,  would also contribute to the reduction in the rate of inflation which rose to 7.6 per cent at the end of February, 2014.
“The SI 33 prohibited the use of foreign currency; meaning that consumers were only allowed to use the Kwacha as legal tender for the purchase of commodities and payment of services.
“But now that the policy has been revoked, consumers will be able to transact in other currencies and this will bring about a reduction in commodity prices as well as the rate of inflation,” he said.
Mr Simutunda said by repealing the SI 33, Government acted in good time to salvage the Kwacha which was losing its grip against major currencies such as the United States dollar, Euro and British pound.
He said for as long as the Kwacha remained resolute against other currencies, the Zambian economy will remain stable to promote a favourable environment for businesses to flourish.
Government recently revoked the SI 33 which was a policy that prohibited quoting and payment of  goods and services in foreign convertible currencies.