Trevor Hambayi, an economist, suggests that the K200 and K500 notes’ introduction signals inflation concerns in Zambia. Without matching economic growth, these notes may lead to the Kwacha’s devaluation. Hambayi highlighted the rising inflation trend in 2024 and emphasized the necessity of addressing the underlying economic issues.

Economist Trevor Hambayi has expressed concerns regarding Zambia’s economic situation following the introduction of K200 and K500 banknotes. He argues that this change indicates a significant inflation issue the country is facing. Hambayi emphasizes that the new currency denominations may not hold their value if they do not correlate with economic growth, leading to a devaluation of the Kwacha’s purchasing power.

During an appearance on Diamond TV’s Breakfast Show, Hambayi highlighted the consistent rise in inflation experienced in Zambia in 2024. He stated, “the introduction of the notes… gives the signal that we’ve got an inflationary issue that we need to deal with.” This statement underscores the urgency of addressing the prevailing economic challenges related to inflation and currency stability, thereby indicating a potential crisis if proactive measures are not implemented.

In summary, the introduction of higher denomination banknotes in Zambia raises alarms about inflation and the stability of the local currency. Trevor Hambayi’s insights suggest that these changes may exacerbate existing economic difficulties unless matched by corresponding growth. This situation points to the need for careful economic management to maintain the purchasing power of the Kwacha.

Original Source: diggers.news