Connect with us

Hi, what are you looking for?

Zambia News

Zambia to Criminalize the use of US Dollars in local economy

US Dollars

Zambia’s central bank has announced intentions to outlaw the use of foreign currency within the country’s economy, coinciding with the strongest surge in the kwacha in four months. The nation in southern Africa has grappled with significant currency instability over the past five years, driving up import costs and contributing to inflation, which reached its highest level in two and a half years this month. Many businesses, from car dealers to shopping mall operators and hotels, frequently quote prices in dollars, preferring foreign currency over the local kwacha.

According to a preliminary document disclosed by the Bank of Zambia on Saturday, individuals caught utilizing foreign currency for domestic transactions could potentially face penalties of up to 10 years imprisonment or fines. The kwacha experienced a notable appreciation of approximately 7% on the final trading day of the week.

Bank of Zambia Deputy Governor Francis Chipimo expressed on Friday, “When a significant portion of transactions are conducted in dollars, it undermines our ability to effectively implement our policies.” He also noted, “External economic shocks are further compounded in our market.”

Chipimo added that the Bank of Zambia is currently engaged in discussions with stakeholders regarding the proposed regulations, as reported on privately owned Diamond TV Zambia.

Over the past 12 months, the kwacha has been one of the worst-performing currencies globally, depreciating by 28%, according to Bloomberg data. However, it has shown remarkable resilience this month, emerging as the top-performing currency worldwide, following Zambia’s resolution of a nearly four-year default on its dollar-denominated bonds and a substantial $570 million disbursement from the International Monetary Fund.

Several factors have contributed to the currency’s volatility, including a protracted debt restructuring process, a sharp decline in copper production—the country’s primary export—last year, and more recently, a severe drought that has escalated the nation’s import expenditure. Zambia had previously imposed restrictions on the use of dollars by local businesses in May 2012, only to lift them less than two years later.

In other news – Madam Boss shares 2024 BET Awards experience with American stars

Madam Boss, the Zimbabwean sensation, has once again made waves on social media with her recent appearance at the BET Awards 2024, where she rubbed shoulders with American stars like Darrin Henson, Usher, TI, Blac Chyna, and many others. The charismatic personality shared several pictures from the event on her social media platforms, captioning them “vibing with the stars.”

Her fans, both in Zimbabwe and across the globe, have erupted with pride and excitement, flooding social media with her snapshots from the prestigious awards ceremony. Read More

You May Also Like

Zimbabwe News

In a recent development surrounding the highly controversial US$100 million Zimbabwe Electoral Commission (Zec) tender scandal, an explosive leaked audio recording has exposed the...

Zimbabwe News

Business magnate Phillip Chiyangwa, renowned for his opulent lifestyle and entrepreneurial prowess, has once again captured public attention with news of his secret wedding...

Zim Celebs

In a celebration of enduring love and commitment, Phillip Chiyangwa, the prominent Zimbabwean businessman and politician, has wed his partner Sarah Frankis after over...

Zimbabwe News

“In a series of setbacks for businessman Mike Chimombe, his company Millytake Enterprises (Private) Limited faces eviction from its Eastlea offices in Harare. Chimombe,...