By Chileshe Mwango
Economist Noel Kabwita has charged that the incessant circulation of money in the economy in the name of empowerment funds is weakening the kwacha.
Mr. Kabwita explains that what is currently happening is that there is a normal circulation of money into the economy which he says has no effect on the currency but notes that the continuous abnormal circulation of cash whose source remains unknown is injuring the performance of the local currency.
In an interview with phoenix business news, Mr. Kabwita has emphasized on the need to watch the performance of the kwacha going by the current economic challenges Zambia is experiencing.
He says in a situation like now where Zambia’s inflation is high, the kwacha should have started appreciating but the opposite is what is happening.