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Economy

Economists assume that a reduction in the prices of the basic food basket is possible

Economists in Moxico assume that it is possible to reduce the prices of basic food basket products in the country and advocated that, to do so, the government should embrace a strong exchange rate policy that appreciates the national currency.

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The economist Isidoro Cassemene considered that the exemption of the payment of customs services in some products, for 90 days, is a "temporary measure" and that measures should continue to be taken to stabilize the exchange rate regime.

Speaking to Angop, the specialist admitted that the exemption of the payment of customs duties will ease for some time the prices of the basic food basket. However, more action and answers are needed for the price reduction to become lasting.

"The problem of the country's economy involves improving the exchange rate system, with concrete actions," he said, considering it necessary to remove the margins on the reference exchange rate applied by commercial banks in the sale of foreign currency.

Waite Chipango, also an economist, said that customs duties cannot be suspended until the duration of the import process, which takes between 30 and 45 days, is reduced.

To Angop, he explained that if the time of the process is not reduced, the businessmen that import the products within the period in which they are exempted from paying customs duties may eventually reapply the current prices.

He recalled that importation is more expensive with the exchange rate than with the seizure costs, and therefore suggested the Executive to make the exchange rate less rigid.

In her turn, economist Liudimila Calunga indicated that the national economy is expected to continue in recession, arguing that the answer lies in domestic production.

The strengthening of domestic production will allow the country to acquire more foreign currency and strengthen the economy, she said.

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