Zambia’s economy is robust and capable of responding adequately to any situation, according to economist Yusuf Dodia, with approximately $3 billion in foreign reserves covering 5.4 months of import cover.
Mr Dodia, the chairperson of the Private Sector Development Association (PSDA), stated that having close to $3 billion in foreign reserves will allow the country to maintain its economy in the aftermath of a crisis for the specified 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.