BOZ INSTRUMENT ‘CONSTRUCTION’ PROMOTING INEQUALITY – FIA ZAMBIA.

 

Lusaka, Thursday (February 29, 2024.

Fight Inequality Alliance – FIA Zambia says the current instrument called ‘Construction’ which Bank of Zambia – BOZ uses through the Monetary Policy is not good for ordinary Zambians.

 

FIA Zambia National Coordinator Mputa Ngalande said Construction involves getting the currency out of circulation.

 

Mr. Ngalande said the idea by BOZ was to raise the ratio which saw the Kwacha appreciating recently.

 

He said economic players such as contractors that need to pay workers will not access their finances fully from the bank when money is less in circulation.

 

The FIA Zambia National Coordinator said the development entails that ordinary citizens will not have money to access goods and services because the Central Bank wants to keep the inflation within the target bound between 6 to 8 percent.

 

Mr. Ngalande said the instruments BOZ has used recently are artificial, resulting in the demand for Kwacha helping it to appreciate against the Dollar.

 

He, however, said the interventions are short term solutions which make it difficult for Zambians to have money because it is difficult to find, thereby raising inequality levels in the Country.

 

Mr. Ngalande has recommended that the solution is for Zambia to consider long-term solutions that address the need for Zambia to move from an import dependent Country to a larger exporter.

 

The FIA Zambia National Coordinator said the problem with being an import dependent Country is that Zambia gets affected when the Dollar strengthens, thereby increasing inequality.

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