Zambia to start transacting in U.S. dollar at border entry

The Zambian government said it will soon introduce a statutory instrument that will allow transacting in U.S. dollars at a border with the Democratic Republic of Congo (DR Congo), state media reported on Wednesday.

The regulation will allow for transacting in U.S. dollars at Kasumbalesa border, one of the country's busiest border entries, in an effort aimed at channeling about 40,000 dollars from the black market into the formal system.

Minister of Finance Felix Mutati said the regulation will enable traders in the border area to transact in dollars to prevent the illegal or parallel market in foreign exchange, according to the Zambia Daily Mail.

The Zambian minister said some of the country's companies which have outlets at the border area were facing challenges under the current law which bans trading in U.S. dollars, adding that traders from the DR Congo were being forced to change their money from the black market, with about 40,000 dollars being sold on the market every day.

He added that the move will boost sale for Zambian businesses operating in the area as the border area has the capacity to transact in huge amount, adding that this would also boost foreign exchange channeled into the formal system.

"As we plan to increase revenue as one of the measures of growing the economy, we need to facilitate smooth trade and introducing the statutory instrument that will allow the transaction of dollars in the border area," he is quoted saying by the paper. Endit