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$2.9BN FOREIGN RESERVES REMARKABLE, SAYS DODIA

By KETRA KALUNGA

WITH $2.9 billion foreign reserve covering 5.4 months of import cover Zambia’s economy is stable and able to respond appropriately to any eventuality, says economist, Yusuf Dodia.

Mr Dodia, who is Private Sector Development Association (PSDA) chairperson, said holding foreign reserves of close to $3 billion would enable the country maintain its economy in the wake of a crisis for the given period.

He said in an interview that this meant that the country would have enough from the reserves to keep the economy afloat for at least five months should the economy for some reason suffer challenges with production.

“If as a nation we are holding foreign reserves of $2.9 billion which covers 5.4 months of import cover, that is commendable,” he said.

Mr Dodia explained that most economies look at the import cover of around three months foreign reserves, therefore Zambia was on the right path.

He said the country was moving in the right direction and should continue building foreign reserves to secure the economy.

The Bank of Zambia said recently the foreign reserves rose to $2.9 billion equivalent to 5.4 import cover after the receipt of $1.3 billion IMF special Drawing Rights at the end of August.

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