Therefore, Zambia has experienced different stages in its scale trading approach. Shortly after freedom in 1964, the national currency known as the Zambian pound was replaced by the British pound sterling. However, in 1968, the Kwacha reestablished the Zambian Pound as the national currency. From 1971, as the dollar became the main reserve currency under Bretton Woods, the change in the scale of exchange shifted from the pound sterling to the US dollar (Mungule, 2004). Foreign exchange equalization is one of the main variables influencing the balance of payments situation. This study examined the relationship between trade scale and foreign exchange adjustment in Zambia, both in the short and long term, using quarterly information from 1998:1 to 2009:4. studied how foreign exchange equalization responds to changes in conversion scale, as to whether and whether the J-turn exists for Zambia. The versatility methodology for clearing installments was the hypothetical system connected in this study. Flexibility methodology fights against the existence of a long-term relationship....

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