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discuss any one trade policy instrument that would be used to strengthen a weak kwacha

discuss any one trade policy instrument that would be used to strengthen a weak kwacha

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It can be mentioned that in order to strengthen weak currency it is very important to create demand for that currency and if the demand for that currency increases then automatically the currency would be strengthened and in this regard trade can be a lot of help. One such example of a trade policy instrument in order to strengthen a weak Kwacha, is to take up export subsidies where if export subsidies are in place, the exports will get cheaper for other countries with which they demand more of Zambia goods with which the demand for Kwacha increases and this strengthens the currency ultimately all in all.

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