Thursday, April 25, 2024
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Kwacha depreciates

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The kwacha has continued to post a depreciation against the United States dollar on the local market.

This is despite the currency recording an appreciation against the U.S dollar in the first week of November.

The Kwacha is now trading between K3,500 and K4,100.

A random check by ZNBC Business news in some bureau de change outlets, found a dollar buying at K4,250 and selling at K4,450.

A British pound was selling at K6,400 and buying at K6,200 respectively.
[ZNBC]

76 COMMENTS

  1. Wait…you think by sidelining Magande you will make it. IMF will squeeze your bolls untill you bring him back. By March next year the kwacha will be trading at K9,350.00 per USD. These are precice economic forecasts going by the worlds financial crisis and Musokotwanomics.

  2. #6 iwe, don’t you know that the currency is a good indicator of foreign money flows. Money has started flowing out of Zambia, just like it did when everybody though PF was winning. Now with Magande fired this has created uncertainly about the new guy and investors hate uncertainty. They would rather sit on the sidelines and see how the new guys perfomm before they can bring in more cash

  3. Lets hope it will stabilise soon. Wishing you all the best of luck Mr. Magande, Ihope the cooperate world will appreciate you just as the late LPM did.

  4. It also has to do with the strengthening dollar, not just depreciating kwacha, exchange rate has 2 sides mwe bantu

  5. The truth of the matter is this has nothing to do with Magande.The investment did not take place during the period of election.Mind you the copper prices have gone down and we are not exporting to get foreign exchage.We now depend on direct foreign investment.Without thta we can not get foreign currency just by saying the elections were rigged it requires pipo with levl headed minds not bakaponya they can not improve the economy of this country.

  6. I have been to blogs on thesun.co.uk one of the U.K’s newspapers, I didn’t find useless bloggers like the ones we have on LT. It was one case in 10 that said nonsense and even their nonsense is better than some one saying am number 1.

  7. No worries! ALL world fiat currencies are SOON on the way out. Get ready for “one world currency” & “one world government”. Congrats OBAMA for being APPOINTED the FIRST World President by The Illuminati. But before the world gets there prepare for a nice juicy World War, followed by several decades of Great GLOBAL Depression. If it keeps the Chinaman OUT OF Sub-Saharan Africa it will be WORTH it!

  8. The article has not given us reasons. Anyone make make observations but we need analysis and reasons behind the observations. Can some economists on the blog tell us why ZMK is losing ground.

    I am not an economist but I think one reason is that we are not having enough dollar inflows. FDI could be slowing due to credit crunch, and revenue from copper are lower due to low prices. Another reason could be the dollar itself, which has been strengthening. Look even the UK£ has lost ground against the dollar.

    Plz dont write articles with no reasoning added to obeservations. Not helpful. Even a kaponya can observe.

  9. The weakening of the Kwacha is the true representation of what is happening to our economy.We were cheated with a powerful kwacha that bought very little.All things equall this is it.How can you be buying fuel at $3.60/ltr?.$1.85/ltr makes more sense not so? In fact it should weaken more so that fuel price indication for fuel should be $0.80/ltr.

  10. The thing they will try by all means to show as if they can do the job the excuse will be Global crisis.And yet if they kept Magande they would have prevented this from happening in a months time you will remeber my words guys.Anyway there too many things we read on the blog you many not remember but thats the reality in Zambia all the time its excuses. When Agriculture was not doing fine dur to Chiluba bad policies they said it was drought when LPM cam he put in good policies worked when those in Chiluba government including Chiluba saw this he said during his tenure there was a drought. When they fail they wont accept.

  11. I am glad to see ZMK is stronger against the UK £. It’s good for Zambians in the UK who have investments in Zambia, like houses and flats on rent. More quid in the pocket.

    Sorry for those in the USA. You will be better off keeping your ZMKs.

  12. Brace yourselves fellow countrymen and women. This is just the beginning. Everything is pointing towards difficult economic times. It’s all to do with the instability caused by the political scene: dying presidents, irregular electoral procedures, introduction of the unknown to the ministry of finance. Apart from this the current government has failed to register anything tangible in terms of development. We can’t even sustain ourselves, we are failing in power and agriculture.
    #1, #4 and #8 you go back to your childhood, play those childish games in nursery. I fail to comprehend, a fully grown man with bolls and a black dikk posting such irrelevant strings of text on a forum such as this.

  13. Christmas time and nothing more.
    Usd will be always on TOP, unless we diversify our economical business than focusing only in copper sells.We have tourism and need more efforts to sell this product in Zed.Unpredictable rains in Zed will make most of the places starve as they can nolonger do farming.

    2000=100 inflation rate

    Viva H H he understands properly the Zed economy and will help kwacha appreciate

  14. Gentlemen, two major things have happend. The world is in a recession so we make less money from our copper as demand has deminished.

    Secondly the US$ has stregthened so many people with money are converting their wealth into dollars. Remember, every nation save their national reserves in dollars. Zambia has $1.2bn. It is the reserve currency. So as it stregthens, other currencies are being hit hard. The Australian dolla has lost 30%, the UK £ is at its lowest in 20years etc etc. Magande and Zambia can do very little about this. Not even Mwanakatwe or Kapwepwe.

  15. #21, those are women they have bolls and black dikk as you called them.Grow up we cinangwa.You do not need to insult, that is the way they want to play with there pc, unless you are using one from your place.Unless if they look like your dad or maybe your mum check the cloths through.

    Viva H H he has no jealous to Zedians as he is well educated

  16. #14 am sure you just don’t understand their English and social discourse, that is why you even find their rubbish better that what people post here. You easily get offended here because you fully understand the discourse and where people are coming from. Those UK sites you just read verbatim and has no clue about what is implied. Stop dissing Zambians. There are a lot of great contributions in a lot of threads here. This is just how the world is ..get used to it Mr Elitist.

  17. #27 i agree with you. So-called alpha male does not know what he is talking about. praobably read the sun newspaper upside down

  18. TO ME I SEE NO CHANGE WHEN KWACHA DEPRECIATE OR APPRECIATE,THOSE ARE JUST TRICKS OF PIPO IN SO CALLED WORLD OF ECONOMIC ALWAYS TELLS BUT BASIC GOODS ON THE MARKET DO NOT GO EITHER WAYS,MY WORRY IS FIVE FINGERS LETS BE A REDUCTION IN IT

  19. We are yet to see the worst. Things will have to be worse before they can get better.RB does not have the charisma to push those technocrats at BOZ and MoFNP. More over he is out of touch with whats happening out there. He probably heard of the financial crisis when HH was campaining.

  20. # 14. this is LT traditional and culture if you are not happy lets meet in courts. Very retrogressive, go and sleep.

  21. pliz mwema economists educate me.why do our money have less value than one of our neighbouring countries with nearly the same population but smaller with no BELABELA and cobalt?

  22. #14 i do not see any need of judging a blogger in the light of your UK blog site. Why do you compare everything to UK, US etc? I dont agree with some one just writing i am number one but i should not call it nonsense because it is not done on your UK site. This is the mentality we have to change. We can not model everything after UK or US.

  23. Those of us whose salaries are quoted in US dollars no need to worry, its more kwacha in our pockets but the problem is what we will get out it. The other time the kwacha depreciated to 5000/1USD, it was all smiles at our company.Musokotwane has a has a challenge right from the first day of his appointment. let us wait and see.

  24. Guys! Let as be realistic with ourselves.Nyama Soya is not going to do anything.That old timer has far passed his prime.That cabinet is jst there for earning a living.

  25. #36 which country is that, hope it is not Zimbabwe is it? Economic sense does not work in Zim, only what Mugabe decrees is implemented. It’s like expecting a dead person to breath at you. Zim is dead, economically.

  26. It’s very sad but all should be fine if the MMD government full of corrupt ministers will prove that the sacking of magande was not for them to enrich themselves.
    Shame of Rupiah Banda.

  27. #10, Ba guy you ran away to South Africa because of the weak and no value kwacha. Surely a weak kwacha should not be an issue and as Ba Moze at #9 states, its news when the kwacha does this ka-thing and appreciates

  28. #36 good question but may not be adequately answered due to space. Kwacha like any commodidity has a price and is affected by its demand and supply.whenever you buy US dollar in to buy a foreign item like a Japanese car,you are putting pressure on kwacha to depreciate. Whenever shoprite externilzes its profit,it is putting pressure on the kwacha to depreciate because it will not externalize profit in kwacha but in forign currency,possibly US dollar.On the other hand when more people exchange their foreign currency for kwacha (the demand for kwacha increases),kwacha appreciates.Now the factors that affect this demand for kwacha are not the same all the time.

  29. Iyi ni Nkhani ya tidye nawo mu boma. Even those that are forseeing the upcoming challenges are only interested in their new jobs.

    After appointments ythe new ministers should have made public commitments on how they intend to cope with their new challenging jobs. Enven just to give hope the many helpless Zambians.

  30. This is why some of us are very much against a model of development that rely on foreign investment so much. Whenever a foreign investors’ expectations are not satisfied (like prior to the 30th October elections),he/she will take out his or her investment and kwacha will be in trouble. As Zambias we also need to reduce our reliance on imports because the more we import the more pressure we put on our kwacha. We need to export more than we import.

  31. # 44; looks like I have an alter ego on this site. Is it possible for you to add a prefix to your name just so as to reduce on this mistaken identity. thanx sis

  32. UK ZED OBSERVER

    I can least agree with you at the degree of our currency depreciation.We understand all economies have been affected by the Financial Crisis,be developed ,emerging and underdeveloped nations like Zambia.
    The Central Bank is expected to use the reservves to maintain the stability of the currency.Depreciation trend of the Kwacha is not witnessed in countries with well managed treasury.It is not giving confidence to our Investors and the country remains one of the highest risky investment destination because of high premium risks.Volatality of the Kwacha is unsusistaiinable for our development and meaningful investment.Its a joke to say their is nothing we can do about it

  33. You should also understand that the underdeveloped economies are least affected by the financial crisis compared to the developed countries like the USA, UK and emerging economies like India ,China and South Africa. This is for the simple reason that their volumes of trade contribution to the international market is low. However, they will be hit by reduction in foreighn aid from the developed nations.Hence we expect the underdeveloped nations to have relatively stable currencies,before the IMF could apply the StandBy Arrangement Facility(SBA) to offset the Balance of Payment Deficit.
    Currency stability is a good dertaminant of foreighn investment in developing countries as opposed SMkt

  34. some comments may not be so useful, but from my general assessment of the comments i can’t help noticing that there is general understanding of the kwacha issues. it seems that this subject is easier to understand than the complex issues of electricity. but economics is not an exact science and even economics experts will not agree with each other, ask Benanke, Greenspan, Fundanga, Mboweni or even Gono! on the other hand electricity is an exact science and should be straight forward: load growth and no investment in new capacity – insufficient capacity – load shedding: straight and simple leave out sisala, so why don’t people understand?

  35. #14 Go back to your foreign blogg. We won’t miss you. Some of us enjoy seeing our children fight for who posts first.Its very relaxing, with all this stress in the world.

  36. #53 For F`s sake learn to use CAPITAL letters after a full stop. You are very annoying. Your posts are painful to read.

  37. 49 and 50
    iwe chi Sarah chaku South Africa. I have been using this name for a while now and yesterday afternoon I noticed Another Sarah from SA using my name. Don’t start with me even the fire brigade won’t be able to put this fire out if you are playing with me. Go buy yourself a name on ebay. Just wait, let put on high heels before I say anymore. chimutu kwati ni tobamutwe.
    Am the Only Sarah on this Blog!

  38. @50
    Am sure you are new to this blog. Leave this blog to us, how can 25, 31 38 40 44 be one person? By the way, are you a feminine male.

  39. Everyone wants to be a Sarah. Hahahahaha!!!!!!!!!!!!!!!!!!
    I will be Sarah Jones from now on. You get that you clones.
    44 and 58 is one sarah. This 61 is a clone.

  40. ‘The Kwacha is now trading between K3,500 and K4,100.

    A random check by ZNBC Business news in some bureau de change outlets, found a dollar buying at K4,250 and selling at K4,450.’

    Which one is which?

    The ZNBC one looks realistic though.

  41. Thankx partially educating me esp 45.For the other guy-i meant Malawi.For Zim am 100% very soon it will be better than us.For your own infomation i visited some three countries during my holiday last weak,My God, they thought the Victoria falls is just in Zim until i produced an atlas or a map,whatever.Is the ministry of still there? it used to be Zambia in the sun and the real Africa.

  42. I fear the worst for Zambia looking at what is happening here in the UK, you wonder whether Zambia will pull this one through. The majority of Zambians are really living in poverty but our politicians won’t talk about it or come up with the quickiest way of how starving villagers will be fed. I have not read anywhere where someone is talking about a solution to the starving people in the villages. Maybe I have missed the news on this.

  43. fake economy, with prices as high as in SA. Zambia is a 3rd world country but with 2 nd world prices.
    how can meat be the same price, even more then i n SA

  44. Kelediti Kalanchi

    It explains inefficiency(unproductive) in the economy coupled with borrowed foreighn consumption parterns.

  45. This article is misleading. It is true that the kwacha has depreciated against the dollar but so have most other currencies. The same article says the GBP is trading between 6,200ZMK and 6,400ZMK. well, two months ago the kwacha was trading at 6,500ZMK against the pound. Is that depreciation?

    The article should instead have the heading “Dollar Appreciates” because that is all it says.

  46. guys lets comment relevantly and realisticaly..imwe bambi katwishi y u even waste your time commenting coz u egually waste our time reading your ma rubbish!!!!!

  47. “#
    48. your flag patnam, PLEASE, the former Finance Minister was never dismissed or dropped because President RB Banda never at any time appointed him to that position. Mr Magande’s term in Cabinet office came to a normal end with the death of his Appointing Authority, late LP Mwanawasa.

    #7, put it very well that Mr Magande was simply sidelined and not fired or dismissed in his “Wait…you think by sidelining Magande you will make it.”.

    Let us all strive to use correct english expressions ans language instead of showing ignorance Zambians ans Zambian Media organisations.

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