By CHATULA KANGALI –
THE Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) has urged Government to maintain policies that will stabilise the Kwacha.
The Kwacha has continued to show appreciation in the last 10 days against the United States (US) dollar due to the weak demand of the greenback coupled with investors attracted to high yielding government bonds and increased confidence in the economic policies.
ZUFIAW president Ackim Mweemba said there was need for Government to be consistent with the policies it puts in place in order to ensure that the local currency continues to stabilise.
Mr Mweemba said in an interview that the recent move by the Bank of Zambia (BOZ) to allow
dollar account holders to deposit as much money as possible, had led to the local currency appreciating against the US dollar.
He noted that most business executives and cross border traders were holding dollars, a situation which had contributed to the depreciation of the local currency.
“Dollar account  holders were not  allowed  to deposit  more than US$5,000, and  this  was leading to most business executives to hold  on to the dollars  thereby, causing a short supply  on the  market. Government should not revert to this measure for the benefit of the local currency,” he said.
Mr Mweemba added that the Kwacha was this week expected to appreciate further because business executives with dollar accounts would be required to buy more Kwacha to pay for the Zambia Revenue Authority (ZRA) monthly dues.
He said appreciation of the Kwacha would see prices of goods and services dropping which would in turn lead to the decrease in inflation rate.
Mr Mweemba   however urged political parties to maintain peace before and during the general elections as this would also help to stabilise the local currency and boost investor confidence.