United States Ambassador to the Republic of Zambia Eric Schultz today met with His Excellency President Edgar Chagwa Lungu at State House. Ambassador Schultz congratulated President Lungu on his recent inauguration and reiterated the United States’ commitment to a continued broad-ranging partnership with the government and people of Zambia.
During the meeting Ambassador Schultz and President Lungu discussed current political, economic, and social issues. They discussed their commitment to expand trade and investment between the two countries, the importance of adhering to principles of democracy and the rule of law, the nearly $500 million in assistance that the United States contributes to Zambian development each year, and the United States’ support to Zambia’s participation in peacekeeping operations.
The Kwacha has continued going down even after breaching the K7, 000 per USD line.
Today, (Thursday February 19, 2015) one USA Dollar is selling at K7.1292. A British Pound is going for K11, 019. To buy One Euro you need K8, 141
Just yesterday, one USA Dollar was selling at K7000 Zambian Kwacha (or K7 PF currency) in most commercial banks.
In Bureaux de change where many people buy foreign currency, one Dollar had reached K7.2.
One British Pound was selling at K11, 000 in most Bureaux de change. In commercial banks 1 Pound is going for K10, 800. ZANACO, FNB, Barclays are all selling 1 USD dollar above K7, 000.,,,,,,,,,,,,,,
You do know that a weakened currency is good for exporters in a nation right, or should we educate you on economics 101.
You UPND Cadres, please get over yourselves about the Kwacha and stop being narrow minded , can you post on this blog any currency that has appreciated against the Dollar in Africa? All emerging currencies are in free fall against the resursent dollar due to good economic data coming out of the USA like job unprecedented job creation in the last 3 months.
Check the currencies of big Economies in African like Nigerian Naira, South African Rand and Kenya Shilling and please stop being alamists of the kwacha. This is a normal trend. All emerging currencies are trending toward weakness against the dollar and Kwacha is no exception
Overzealous UPND cadres are doing everything to trigger a negative debate on the issue of Kwacha depreciation. They are driven by their ambiguous arguments. Well, let’s debate on a platform of Demand or Pull economics and Financial Theory. To start with, allow me to provoke the minds of our opponents who seem too keen at exploiting this issue from one side as a weapon. Do you realize that many countries rush to depreciate their own currencies to help domestic exports? No doubt policy directions are in a big contrast to the USA which has forced many other countries among them Japan and Germany, to appreciate their currencies on the ground that they have trade surplus. However, based on experience or indeed the recent Japan experience and the persistent US problems we know that depreciation…
Products of Chizongwe Secondary don’t get swayed by politics. MMD Bootlicker argues like an Ex Chiz metal
…based on lessons learnt from the recent Japan experience and the persistent US problems we know that depreciation is not a panacea but should be exploited in economic development considering that the same depreciation makes exports more competitive though on price based only. We need Innovation, competitiveness by quality and performance etc improved. Depreciation is a short-term relief only we should turn around instead.
I say so because we know that our country now prone to frequent devaluation is paying a higher price (=interest rate) for attracting foreign currency denominated investment. This limits our national development prospects. However, you don’t just turn around the economy but increase its productive capacity to translate into economic strength picked by the currency.
With Dr. Kalyalya at BOZ, and good economic advisors in the administration, i believe our monetary and fiscal course will change for the better soon.
The kwacha will continue on its downward trajectory for as long as the country continues to import vegetables, bread, sweets, beer and any imaginable consumable when these are produced locally. This when viewed against the declining copper prices makes the explaination of the drivers for the downward trajectory easy to understand. The fixation with Shoprite (a much trumpeted achievement by Mr Hakainde) has consequences – this is one of them.
As long as you don’t have firm control of the mining companies they’ll keep on squeezing your balls. That’s the main reason for the falling value of the kwacha
Yes depreciation of the Kwacha is a concern especially the fluctuation of it is worrying. But it does not mean that when the President is meeting an Ambassador then he should be talking of depreciation of Kwacha.
The Kwacha is weak .. Your president has never said anything about the economy . Maybe has know idea about economy ..
@senior citizen, you want people to close their eyes although they are seeing some abnormality in the rate of falling of the kwacha. You have to be serious even if you are a mare cadre of a political party. It is all about the reading culture and intelligence of the people reading through such articles and not UPND. We can even tell you which other Financial outlets we read to cause us get alarmed. UPND is just another party in Zambia just like the other many of them. Zambia has educated GULUs in FINANCIAL issues but they do not subscribe to any party. You mean you are so ……..not to see the nose diving of the kwacha. For some of us HH is no longer a factor, but we want to save our economy from collupsing period. Be realistic in the way you look at things, are you amongst the uneducated
@3 Rasco,
Take a break from emotions and choose to be a Zambian national redeemed from a Groupthink of tribal outfit if you have to understand my point. Only then can you appreciate a constructive discourse. Indisputably, the Kwacha is on a slide. But instead of alarming without offering suggestions, let’s encourage our people to exploit the current situation for economic development considering that the same depreciation makes exports more competitive though on price based only. Our farmers, small scale miners in export and other sectors producing for the export market should double the effort now.
We are not in denial that our country now prone to frequent devaluation is paying a higher price (=interest rate) for attracting foreign currency denominated investment. This limits our national development prospects. However, you don’t just turn around the economy but increase its productive capacity to translate into economic strength picked by the currency gain. The Lungu administration is hardly 3 weeks in office with new advisors. Very sure they are working around the clock cognizant of the fact that the kind of monetary tools used matters and more depends on the level of openness of the economy they want, the trade relations of it and the kind of regime regarding the capital mobility their policies may be comfortable with.
I have some word with the American ambassador, we shall very much appreciate if he would stop poking his nose in the affairs of our country especially politics. We elected LUNGU knowing very well he is a DEMOCRAT, and he may not neet to be remaided. If USA has no money to assist ZAMBIA cary out REFEREDUM on the constitution, why not just shut up and be quiet, let those who have a bit of money to spare do that. US should not be a spokeperson for the many other country that ZAMBIA has bilateral relationships. I hope LUNG is alive to this fact, is it that the US has discovered a CRACK or a LAKUNA in LUNGU now that the political GULUs like Michael SATA is gone. PLEASE LEAVE US ALONE.WE KNOW HOW WE GO BY OUR LIVES IN ZAMBIA,ASSIST OR DONT PERIOD.
The problem is that UPND cadres think by HH making a list of what I will BLa Bla Bla do then he has what it takes to fix the economy and Kwacha. Far from it.
Kwacha is depreciating simply because earnings from copper sales have reduced. The price of copper had reduced from about USD7500/mt to USD4700/Mt. China has reduced on buying the metal.
Whether the kwacha will be K20 to USD1 or K1000 to USD1, EL will win 2016 elections
Whether with new constitution or not, EL will win 2016 elections.
UPND stands a little chance to win if HH is replaced as leader because in 4 lost elections, he has said all he could to the people but have rejected him. So there is nothing for UPND. Its not about the economy but whether HH is a salable or marketable product which he is not. Finito
I think its high time the president started talking about the way forward on our economy instead of just swearing ceremonies.