Economist Yusuf Dodia has encouraged the government to investigate the kwacha's constant depreciation against major convertible currencies, specifically the dollar, to explain why the country is experiencing abnormal depreciation of the local currency.
Mr. Dodia finds it surprising that the kwacha has continued to depreciate even at the end of the year, a time when multinational companies pay Christmas bonuses, renew lease agreements on properties and contractors, and make payments for provisional taxes to the government.
Mr. Dodia says a forex influx strengthens the kwacha and wonders what has caused the local currency to behave differently this year.
He has further called for an investigation into speculations that foreign companies are dissatisfied with the introduction of an export proceeds tracking framework and are therefore hoarding foreign currency from the Zambian economy, hence contributing to the weakening kwacha.
