BoZ urged to enhance economic stability
THE Bank of Zambia (BoZ) should place a premium on macroeconomic stability as this will send the right signals to the international community.
There is need for the Central Bank to be more consistent in calling for fiscal discipline and other fiscal strategies seeking to reduce the fiscal deficits.
This is according to the Civil Society Organisations (CSOs).
Speaking on behalf of the CSOs, Isaac Mwaipopo said advocating for consistent fiscal discipline would send positive signals to the international community.
Mr Mwaipopo said CSOs hoped that the fiscal side complements efforts by putting in place measures aimed at fiscal consolidation in order to restore macroeconomic stability.
He was speaking in Lusaka this week at a media briefing.
These CSOs are Action Aid Zambia, Centre for Trade Police and Development Consumer and Unity Trust Society, Zambia Council for Social Development, Transparency International Zambia and Oxfam.
“The central bank of any country is a crucial institution charged with the primary responsibility of promoting macroeconomic stability, partly as a signal of stability to global investors and financiers, and also as a vital ingredient in the economic growth equation,” he said.
Mr Mwaipopo encouraged the incoming BoZ Governor, Christopher Mvunga, to insulate the K10 billion stimulus package from being used for political expediency.
This, he said, could deeply undermine the intended purpose of the facility and potentially plunge the economy into a deeper economic crisis.
“Given the prevailing economic conditions exacerbated both by increasing debt repayments and the Covid-19 crisis, from the monetary side, the BoZ has already set in motion a series of credible measures such as provision of the K10 billion stimulus package as well as reduction of the monetary policy rate,” he said.
Mr Mwaipopo cautioned that any changes in administration and operation of the Central Bank had the potential to send far-reaching ripples across and beyond an economy, signalling either a radical shift in economic management or strengthening of efforts on current trajectory.