Economist lauds dollar ban
A LOCAL economist has said the ban on dollarisation will establish a firm basis for a sound local financial sector that will in the long run support a steady growth of the economy.
However, the Tourism Council of Zambia (TCZ) has said the move would impact negatively on tourism as most of products in the sector are quoted in foreign currency.
Commenting on the Government‘s Statutory Instrument (SI) to prohibit the quoting of prices in United States Dollars, Likando Mukumbuta said dollarisation would promote strong and steady economic growth in the economy.
The Government has banned business houses and institutions from quoting prices of goods and services in foreign currency rather than the national legal tender, the Kwacha.
Mr Mukumbuta said the Zambian economy was experiencing what he termed as an unofficial dollarisation and the move by the Government to issue the SI would protect the Kwacha as legal tender.
It would provide a stable and secure economic and investment climate.
“Of late we have seen inflation in Zambia go down to a single digit and so probably there might be a sentiment that we need to find better ways of consolidating this so that we can become an economy where inflation performs consistent,” Mr Mukumbuta said.
But TCZ chairperson Felix Mulenga said the ban on dollarisation would impact negatively on the tourism sector as most of the products in the sector were quoted in foreign currency.
Mr Mulenga said most of the products offered by the hotel and tour operators were exported to foreign countries and as a result there are priced in dollars.
He said the ban on dollarisation would have a negative bearing on the sector because clients make bookings in advance saying that quoting in Kwacha would result in price fluctuation.
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