Economist Kelvin Chisanga says the Kwacha remains bearish despite the Central Bank’s heavy hands in moderating the supply pressure.
Mr. Chisanga said this year’s calendar has invisible wars which he reference to as bad year playing cards with offsetting effects amist standing potential opportunities.
Kwacha’s main driving forces still remains on conditions of both demand and supply factors coupled with some market sentiments standing in reasonable base, notwithstanding renewed hope and confidence within the moni g sector,” he explained.
He added that food costs will strongly drive inflation this year looking at the rainfall pattern of the year.
The economist stated that the dry spell will negatively impact food supply factors both locally and regionally.
Mr. Chisanga has further advised the government to make tactical plans around subsidizing food even though it might badly hit into the local forex market fundamentals.