Zambian Economist Alexander Nkosi says the Zambian currency is determined by how much is bought and sold in terms of capital equipment, fuel, resources and many other things.
He said the Zambian currency which is the kwacha can only be strengthened when production is increased and many exports are being done.
Mr. Nkosi said in an interview that, spending more on importation of goods such as fuel and fertilizer among others creates a weak kwacha as there is a lower supply of foreign currencies in the country.
Mr. Nkosi further explained that increase in production through investing in agriculture, tourism and manufacturing among others for export purposes is a long term solution for the kwacha to continuously gain strength or stability.
“So because of a situation were more is spent on importation of fuel and fertilizer, a weak kwacha is created,” he said.
