Ban on quoting in forex welcomed
THE Private Sector Development Association (PSDA) says the Government’s decision to ban the pricing of goods and services in foreign currency is good and is likely to strengthen the Kwacha.
But, the First National Bank (FNB) says the decision will not have any immediate impact on the local currency’s relative value.
PSDA chairperson Yusuf Dodia says the decision will help the Kwacha gain strength against other convertible currencies.
“The move by Government to ban the pricing of goods and services in dollars is a good move that will help strengthen the Kwacha, as you know the dollar has more value than the Kwacha, which is not right,” he said.
Mr Dodia said this in an interview in Lusaka recently.
In a separate interview, Zambia Consumers Association (ZACA) executive secretary Muyunda Ililonga welcomed the decision, saying it will create price stability on the market.
Mr Ililonga said there is no need for local markets to sale goods using foreign currency.
He said there is no fixed price for goods pegged in dollars.
We welcome Government’s move. In fact we commend it for that because it is not necessary for local markets to be pricing goods and products in a foreign currency,” Mr Ililonga said.
Meanwhile, the FNB daily markets update for Wednesday availed to the Daily Mail states: “Although the bank feels this piece of legislation will not have any immediate impact on the local currency’s relative value, questions remain as to how much it encompasses.