Zambia Lifts Foreign Exchange Limits to Foil Parallel Market
- Customers can withdraw more foreign currency from dealers
- Kwacha has depreciated every day for past four months
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Zambia’s central bank increased the amount of foreign exchange that people can buy or sell daily in an effort to draw business away from the parallel market, Governor Christopher Mvunga said.
The nation’s kwacha currency has depreciated against the dollar every day for almost four months. Even as prices for copper, which the country depends on for about three-quarters of export earnings, reached historical highs, the Bank of Zambia’s foreign exchange reserves have dwindled to near record lows, and there are dollar shortages. That’s caused some people to try source foreign exchange through informal channels.