The governor of Bank of Zambia (BOZ) has urged traders to reduce prices of their goods and services in line with the appreciation of the country's currency.

Caleb Fundanga was quoted by Zambia Daily Mail as saying on Tuesday that it is disappointing that the traders have not done so despite the appreciation of kwacha, which is currently about 3,500 against one U.S. dollar compared to 4,800 against one dollars at the beginning of 2005.

The movements of exchange rates should be expected in a liberalized market but it is disappointing after achieving what they have been crying for, the business community is not responding.

"A reduction in general prices of goods and services is as good as a salary increment. A reduction in prices of things will actually benefit everyone hence even the demand for salary increment should be moderate, he said.

The appreciation would be meaningless if Zambians do no invest in the economy and work hard, according to the governor.

He called on the business community to take advantage of hedging instruments especially in an environment where the economy is liberalized.

Fundanga said they are doing a study on how the exporters have been affected by the appreciation.

Source: Xinhua