The appreciation of the Kwacha has started reflecting in the fall of some commodity prices on the market.
It is encouraging to see that some business entities have already reacted to the appreciation of the currency by reducing their commodity prices. Businesses are now able to reduce their prices because they know where the exchange rate is going to be.
With regards to the exchange rate, we have seen in the past few weeks that our currency has continued to appreciate.
The appreciation of the Kwacha and subsequent improved supply of sunflower from Ukraine on the international market, the price of cooking oil in Zambia has reduced remarkably, with the commodity fetching in the range of K205 and K194 per five-litre container in most surveyed supermarkets. Most chain stores have predicted a further drop in the commodity and other items as well.
The price of cooking oil had shot up early this year to as high as K265 for a five-litre container due to the free fall of the Kwacha.
The Kwacha has appreciated significantly over the past few months owing to government’s sound policies, interest rates, improved investor sentiment in our economy among others.