The Zambian government says it has no plans to re-introduce exchange controls in a bid to stop the plummeting value of the local currency against major convertible currencies.
The Zambian kwacha has hit its lowest level against the US dollar since November 2015, making it Africa’s worst-performing currency.
Following its poor performance, speculation has been rife that the government may look to reintroduce exchange controls as a mitigating measure.
However, Finance Minister Margaret Mwanakatwe said in a statement that she wished to "assure both local and foreign investors, businesses, and the general public, and categorically state that the government is not about [to] and will not re-introduce exchange controls".
The statement said the government had received reports of "unscrupulous persons" spreading false information implying that exchange controls are about to be re-introduced in Zambia, and "that foreign currency accounts held in our banking system will be converted into kwacha".
Ms Mwanakatwe said her government remains committed to maintaining the current “flexible exchange rate regime". Zambia, which relies on mining as the main economic activity, has also experienced upheavals in that sector.