Currencies
Zambia Drafts Penalties to Curb Dollarisation; Kwacha Jumps
- Similar forex restrictions were abolished a decade ago
- Dollar demand to increase as country resumes debt servicing
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Zambia’s central bank published plans to criminalize the use of foreign currency in the local economy amid the biggest rally in the kwacha in four months.
The southern African nation has faced severe currency volatility over the past five years, driving up the cost of imports and fanning inflation, which neared a two and a half year high this month. Companies from car dealers to mall landlords and hotels often charge in dollars, shunning the local kwacha.