Bank of Zambia to maintain tight monetary policy amid rising inflation

Bank of Zambia (BoZ) Deputy Governor (Operations), Francis Chipimo, has announced that it was challenging to abandon the tight monetary policy, given the rising inflation.

Chipimo noted that the recent injection of US$570 million from the International Monetary Fund (IMF) significantly boosted the country’s reserves.

During his presentation at the ongoing Zambia International Trade Fair in Ndola on Friday, Chipimo stated that the Central Bank would continue to stabilise key economic fundamentals.

“We are going to continue with our role of ensuring that key fundamentals are kept in check, so we are not going to abandon monetary policy measures,” Chipimo told journalists.

He added that the IMF funds, along with an expected grant from the World Bank, would help the country manage imports.

Chipimo mentioned that the financial support from the IMF and the World Bank would bolster the country’s reserves, aiding in the management of imports of power and food products.

In the medium term, he highlighted that the revitalization of Mopani Copper Mine and Konkola Copper Mine would significantly boost the economy.

Chipimo also assured that the country would maintain a flexible exchange rate.

He emphasized the importance of supporting government’s drive to increase investments in alternative energy to address the energy crisis.

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