ECONOMIST Noel Nkhoma says the Bank of Zambia (BOZ) should not be reactive to sorting out issues surrounding the depreciation of the Kwacha because such moves give advantage to speculators on the market. A speculator is any individual or firm that accepts risk in order to make a profit. Speculators can achieve these profits by buying low and selling high especially in FOREX trading. In an interview, Tuesday, Nkhoma said speculators have been taking advantage of the situation whenever the kwacha depreciates because they know that the Central Bank would react immediately through intervention such as spreading money into the market. “Those are some of the tools, what we call Monetary Policy tools that any Central Bank can deploy. But...
