Melo News | Tuesday, July 23, 2024 | Lusaka
Economist Dr. Lubinda Haabazoka has criticized the International Monetary Fund (IMF) for advising against de-dollarizing Zambia’s economy, calling it an inappropriate move that should be disregarded.
Dr. Haabazoka suggested that the IMF should focus on promoting the use of the dollar within the United States rather than in Zambia, emphasizing the need for the country to develop its own currency and economic strategies.
He emphasized the importance of diversifying Zambia’s economy, boosting its manufacturing sector, and increasing exports, rather than relying on foreign currencies like the dollar.
Referring to section 4[2] of the Bank of Zambia Act 1996, Dr. Haabazoka highlighted the mandate for the Bank of Zambia to issue Zambian currency as legal tender, with one kwacha being equivalent to 100 ngwee.
He urged the IMF to respect Zambia’s laws and regulations, suggesting that the focus should be on supporting the country’s economic development within the framework of its own legal system.
On the other hand, Ibrahim Kamara, the Head of Research at the Center for Trade and Policy Development (CTPD), emphasized the importance of de-dollarization as a crucial step towards restoring the Kwacha’s credibility and ensuring long-term stability and growth in Zambia’s financial sector.
