OMCS WELCOME BOZ PLANS TO CRIMINALIZE USE OF FOREIGN CURRENCY IN LOCAL ECONOMY

 The Oil Marketing Companies Association of Zambia has commended intentions by the bank of Zambia to prohibit the use of foreign currency in the local economy and advises that the government does everything possible to hold the value of the kwacha.

Recently, the central bank published plans to criminalize the use of foreign currency in the local economy amid the biggest rally in the kwacha in four months as a draft document shared by the bank showed that those found using foreign currency for domestic transactions may face prison terms of up to 10 years or fines.

In an interview with Phoenix News, Association President, Kafula Mubanga says this is a good move although the volatility of the kwacha has continued to threaten the trade system in the country, including oil marketing companies.

Dr. Mubanga says this is because it takes time for OMCs to recoup funds and that if the kwacha keeps floating back and forth, it becomes detrimental to them.

He says the association however remains hopeful that the move will contribute to the strengthening of the kwacha and help to stabilize the trade lines in the sector and the economy at large.