.Gondwe

By JAMES KUNDA –

THE Zambian economy is resilient and fundamentally strong enough to accommodate the shocks which will result from President Michael Sata’s death, the Bank of Zambia (BoZ) has said.
BoZ Governor Michael Gondwe said it was expected that financial markets may become unsettled leading investors and individuals to take measures that reflect market uncertainty rather than any change in the fundamental strength and resilience of the economy.
He assured in a statement that the economy will remain fundamentally strong despite the loss of the President.
“I wish, however, to assure the nation that the financial sector and the Zambian economy remain fundamentally strong and resilient,” Dr Gondwe said.
He said further, the Central Bank was of the belief that the fundamental drivers of the economy remained in place and that the prospects for 2015 and beyond continued to be bright.
He said economic resilience was already demonstrated through the challenges faced in the foreign exchange market over the first half of this year.
“This resilience has been demonstrated this year through the challenges faced in the foreign exchange market over the first half of the year, the measures taken to address these challenges, and the relative stability we have seen over the third and fourth quarters of the year. Furthermore, our financial sector remains well capitalised and sound,” he said.
Dr Gondwe said consistent with the Central Bank’s policy of operating a flexible exchange rate while minimising volatility, BoZ stood ready to provide support to the market as required during difficult times.
“In this regard, we remain resolute in ensuring that we maintain macroeconomic stability that supports the continued growth and diversification of our economy.
“On behalf of the Bank of Zambia Board, Management and staff, and indeed on my own behalf, I wish to convey our deepest condolences to the First Family and join them in prayer during this difficult time,” Dr Gondwe said.