The Zambian government has knocked off 3 zeros from the Kwacha,a move aimed at strengthening the local currency against major convertible currencies.Analyst Chibamba Kanyama highlighted the core issues like strong production,exports and fiscal discipline so that the zeros do not resurface.
Finance minister Alexander Chikwanda says Debasing will reduce transaction costs associated for businesses and the general public.
However it must be noticed that people with "mattress money" will have to bring it into circulation and this will lead to temporary inflationary pressures.
Inflationary data for the second quarter seems to support this move since monthly inflation seems to have been falling gradually over the second quarter of 2011.
Read or download Inflation data
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