BOZ URGED TO INTRODUCE COPPER AS PART OF STRATEGIC FOREIGN RESERVES

 

By Balewa Zyuulu

Economist Emmanuel Zulu is calling on government through the Bank of Zambia to seriously consider storing copper as part of its foreign reserves.

Specialists predict that copper’s consumption could explode by 2050 and due to its many properties thermal and electrical conductivity, corrosion resistance copper has become an essential metal in modern societies as the precious metal gains increasingly more attention as an essential material in energy transition.

Mr Zulu says the Central Bank must as a matter of policy buy a percentage of copper from the copper mines and sell it as sovereign copper bonds which essentially can be government securities denominated in pounds or tons of copper sold in quarterly phases.

He is of the view that since the demand for copper will continue to significantly rise, holding the precious metal would provide a grand opportunity to boost the country’s foreign reserves.

Mr Zulu says if considered, this policy would provide an option to investors who can look forward to appreciation in copper prices at the end of the eight-year bond tenure.

PHOENIX NEWS