Information Communication Technology's Influence on Exchange Rate

Investigated in this study is the influence of information communication technology (ICT) on the exchange rate in Zambia from 2010 to 2021. The research methods employed involve using descriptive, exploratory, and experimental designs. The results are reported focusing on ICT acquisition, usage, and production in relation to the performance of the exchange rate: imports of ICTs from the Zambia Revenue Authority (ZRA) represented the uptake while the performance of the exchange rate from the Bank of Zambia represented actual volatilities. It was further discovered that the ICTs influence movements in financial transactions by increasing the quantum of transactions. The impact on the movements of currencies advertently affects the exchange rate causing volatility. The role of ICTs in the amalgamation of markets, trade linkages, and openness, is key. Conclusively, ICTs influence the exchange rate: inherent in productive means and permeate consumptive aspects of ICTs and financial transactions. The main limitation arose from data collection on ICT software and services due to lack of a consolidated data capturing information system.