ZAMBIA’s gross international reserves have dropped to US$2.317.7 billion in March from US$2.371.4 billion in February this year, says the Bank of Zambia (BoZ) .
BoZ head of public relations Kanguya Mayondi says the foreign reserves declined slightly to 3.2 months of import cover in March.
This means that in the event of a major crisis, the country can survive on imports for a period of three months and two weeks without going on its knees economically.
However, this is still below the six months import cover recommended by the Southern African Development Community (SADC).
Mr Kanguya said in response to a Daily Mail query in Lusaka yesterday that the 3.2 months import cover is in comparison to 3.3 months import cover recorded in February 2012.
Mr Kanguya said there has been a minimal decline in the reserves since January.
On Tuesday, BoZ deputy governor Bwalya Ng’andu said the central bank sales of foreign exchange to the market aimed at moderating the depreciation in the exchange rate amounted to US$152.5 million.
Dr Ng’andu said in managing the exchange rate, BoZ intervenes in the market for the purpose of mitigating instability in the exchange rate and accumulating international reserves.
He, however, said the intervention has limits, and when the exchange rate is depreciating, intervention aimed at protecting the exchange rate at a certain level will result in the depletion of the country’s foreign reserves, thereby impacting negatively on the country’s ability to meet its international obligations.
Some analysts say the reduction in the foreign reserves is minimal, adding that the country is within the required threshold.
[Zambia Daily Mail]
Drop or vanished? I dont think there could be any with the everyday comedy from plot 1.
The man on the picture is not kanguya
The man on the picture is not kanguya. Should the drop of less than 1% really matter that much?
Serves us right for voting PF into government.We have been busy insulting RB who at least left money in the reserves,.What do PF supporters say now that PF is depleting reserves in less than a year of being in power.Lets hear what PF intellectuals and analysts have to say about this.
That is not kanguya you fools That chephas Mukuka
I keep saying it. These PF cretins are up to no gooid. They know nothing about running an economy. All they have been doing is spending the money which MMD made and left behind. Zambians are yet to see more suffering, just wait. The Kwacha will soon start tumbling to more K5,600 to the US Dollar and will definitely surpass K9,000 to the Pound. Meanwhilke, copper prices have been steadily falling throughout the past few weeks. Meanwhile, all you hear from PF is Kabimba threatening everybody. Nobody is talking about the economy. PF is definitely a one-term party. If one tribe insists on voting back PF into power again in 2016, Zambia could split up for good. It is serious.
Which tribe, Bemba? You are a sad tribalist. All who voted for PF are Bemba?
we havent seen anything yet!
This has been our major concern ever since PF govt. never availed the nation its national agenda after assuming office. The prominate crusade has been to fight corruption which every progressive Zambian agrees where its been established with evidence. However, concerns were raised with regard to the modalities of achieving this fight and more than often its been selectively fought without well founded reasons, while a few are in courts of law. The biggest worry now is the depletion of the reserves left by MMD govt. The corresponding achievement to this depletion is absent. It goes without saying further that the alleged fight of corruption is meant to hoodwink Zambians for more plunder in the nation by PF govt. See Mr Sata travels and donations made to foreign govts when Zambians are dying
Mwana akalila bonzo,leka mwana mupase!!Zambians cried for a bone,now let them chew on it!!
Abandoning stake and voting for bones!!This is just the tip of the iceberg!!Wina azalila,wapya munzi!!!
Totally predicted by all who knew the truth about PFs economic prowess…ths is just the case of chickens coming home to roost. Note that we could go down to 2bn by November and actually be in deficit by 2013 with the unbudgeted outbursts from plot 1. The only real investment we might be able to attract by 2016 is secret torture chambers for the United States!
Just following you here to thank you for the comment on the other one. We need you Jack. We can’t have you tortured again :) Do you think if we give you one more season you can crack this one :) Cheers again.
Copy that A’Phiri….Will need Chloe and entire CTI unit relocated to LSK for training untrainable old dogs new tricks!..This is one major operation. For the new reloaded season I will also require Almedahs mysterious resurrection. Wont be easy to dodge the torture chambers though, will need a revamped Almedah to have my back on this, these are some dangerous hostiles in the parameter…beep beep
without medicines in hospitals and all national projects initiated by MMD haulted. The depletion of Foreign Reserves spells hard times a head of the nation. Declining foreign reserves is a direct result of suspending all productivity in an economy that results in accumulation of reserves. Instead a nation resorts to cunsumption only of the existing reserves or massive plunder of reserves is taking place. This happens where a country is without economic strategy to sustain itself and become competitive on the world stage. Copper is a wasting asset and Zambia will be the poorest country in Africa if its planners fail to put in place strategical plans to counter the mono-natural resource on which its economy hinges. PF govt is a wake up warning call to Zambians for our future existance.
When one called RB useless, Levy as one with no agenda. It would be nice if PF themselves had better plans than just physcal cleaning and animal restocking at State house. It looks like Sata is all about making himselve comfortable at plot 1, with no plans or agenda for national development hence leaving it to ministers who are also lost in the world of economics. No wounder one minister says one thing only for the next minister or Wynter to go the very opposite. Where is the experience from Sata, where is his position on $2.5b deal, who is in control kashi? I think Wynter is in control, a man with no track record as a lawyer to show for….
Well, it is too early to make that call. Am waiting for end of year number to make the call and hit the panic button.
My concern though is that reserves are dropping and we have not seen any tangible project on the ground to create jobs and lift people out of poverty. The Jury is still out on this government
What do you expect from PF, fake promises without prior planning and now this shows you that this government has no economic agenda.Remember Dr Musokotwane on ZAMTEL saga warned PF that such activities would affect foreign investment and now this has come and it still continues what will become of this nation by end of year.Fiscal rating also indicated but Zambians are ignoring we are yet to suffer
Are we safe ? Can PF sort out this trash please !!!
YOU CAN’T COMPARE THE DROP IN RESERVES TO BILLIONS AND TRILLIONS THAT ZAMBIA LOST THROUGH CORRUPTION IN THE PREVIOUS REGIME. A LOT OF COVERING WAS DONE TO GIVE AN IMPRESSION THE ECONOMY WAS DOING WELL IN ACTUAL FACT IT WAS NOT. WHAT WE ARE SEEING IS A TRUE PICTURE OF WHERE ZAMBIA HAS BEEN AND IS ECONOMICALLY. HOW ABOUT THAT PRINTING OF MONEY? HOW MANY MORE PEOPLE BURIED BILLIONS THAT WE DO NOT KNOW ABOUT?
I have an idea, we withdraw all that money and share it amongst the 13million zambians, then we become No. 24th province of China. PF would till be rulling but getting instructions from beijing, how about that????
Good idea
LOL Best plan! At least then we can all stop guessing and will finally be clear as to WTF is going on both economically and governance-wise!
This is RB’s fault because the reserves MMD left for the country were made up of fake dollars printed by the Chinese infestors who are now our friends! Anyway what PF will do is offload the fake dollars left by the MMD regime by using them to pay for the petrol that we are donating/selling to Malawi. Within 90 days from now, the whole country will have more money in its pockets because the rebased kwacha will be worth more than the dollar.
.
I commented about this issue in February and some lunatics called me a liar. As a matter of fact, the figures are lower than this PR chap has stated.
The reserves should not be dropping but rather have a steady increase using the MMD Policies & benchmark.
The latest reports also shows that in the last six months, Zambia has had the lowest Foreign Investment Levels for years.
Let’s not go back to the years Sata & Xavier Chungu just turned up at BOZ and collected K2 Billion in trunks for the MMD Convention in kabwe, which of course was not replaced back.
Agha chera ostad baraye cercont dadan dar iran alaghe nadare.baraye kharej neshin ha bishtar az dakheli ha arzesh ghael hastand.Tamam dardhara ma dar dakhel tahammol mikonim.morghe sahar dar dakhele iran tasir gozar ast.bishtar ejrahaye ostad dar kharej delneshin nist.
@# 17 Kaponya!!
Wake up and stop dreaming with your 90 days!!No wonder RB pitties you and all of the 90 days fervent believers!!
I think you missed the irony in my posting – take it easy man, am on your side!
Missed the satire!!! may need to wake up yourself. LOL!
Iwe that is Zufiaw President Cephas Mukuka. Thats not Kanguya.
What typeof jouralism is this?
Iwee Tikambeko get a life. Which one is good? Billions gettin lost through corruption with more foreign reserves in the coffas or pupported corruption fight with foreign reserves diminishing? Accept the fact that these people have failed. Why do still want to be comforting yourself? Get a life man?
‘Hand me the ammunition so I shoot myself in the foot,’ said Jack the jumper to conclusion.
‘Um. Could this wait a moment?’ said Cat the cautious one.
‘I’m not sure,’ said Ian the indecisive.
‘Don’t you need a gun?’ asked Saki the sarcastic one, ‘And a license to shoot thyself while you’re at it.’
‘Let him do it. I’m a doctor.’ I lied just wanting to see how painful it would all be.
Haha. Too early in the morning for me to absorb figures and reactions. Is it okay if I don’t panic. Yet. Give it a couple of coffees and I might return full of beans :)
This is not a problem because we were told that you cant eat reserves just like you cant eat inflation. By the way, there has not been a hiring or firing in the past week – does that mean Ukwa is in hibernation again?
.
As long as Sata pops up with Un-Budgeted Programs which are not in the National Budget, the reserves will keep noise diving.
Commercial banks have started suffocating due to less forex.
Capital Float is on the rampage. Millions of dollars are being withdrawn every week from Private foreign accounts as well as Corporate Accounts to safer heavens in UK, USA, China, Botswana, South Africa etc.. When it should be the other way round.
They should explain what they spent the money on. Surely they know.
Its’s not enough for PF to just come out and say money has disappeared / dropped from the reserves.
OF ALL PRESIDENTS, RB WAS A FLOP. HE AND HIS MINISTERS HAVE LEFT THE COUNTRY IN JEORPADY BY PRINTING AND BURRYING MONEY. WE HAVE NO OPTION BUT TO REBASE THE CURRENCY TO SAVE ZAMBIA.
WOW! I didnt realise we still have former tujilijili addicts, who are still drunk on the 90 day party on this forum. Thought you have all been wiped out by natural selection! Anyway, I know where the ceased tujilijili stock is, please visit Mr Jubica Pauls house at 2 a.m tonight…there are 6 friendly dogs waiting for you there, but you can run past them to get to your next ‘fix’. Trust me its perfectly safe!!!!!
Where is phrophet Chanda Chimba III the man is as good as TBJ he told us and we could not listen wait and see.
we want our money back arrest those PF thugs .the money has disapeared it seems winter is enjoying those reserves.BOZ governor must be answerable who authorised him to use our money.
Disclaimer: Did not notice we had a Jack up here before making up my morning tale :) Can feel the traces of panic at the base of my neck but that might be coz I just ran out of Ricoffy. Yep our friends from SA are setting up shop quicker than you can blink…any Zed exporter of coffee will have a true fan in me…I will single handedly buy enough coffee to replace the missing money. Ha. As if :)
Now i am confused how much is this amount being discussed 2.3 bill or 2.3 trillion dollars someone please help.i am begining to think we have alot of money in our reserves why borrow
I never knew that 0.2 months is two weeks and 0.3 months is three weeks, or am I missing something?
If I am mistaken, please forgive my ignorance, after all I am not the one looking after your money Zambia.
If I am not, then…
What was the position of the reserves in August last year? Anyone with the answer? Please help.
Were the reserves able to cover 6 months’ imports in Aug 2011?
ni za auso ndalama olo kapena ni za anyoko…..!
christ uyu sata anivuta…akuti na chokela ku malawi… natenga ndrama, mwana wa imbwa…oh na tukwana…temper temper….anichimwisa uyu galu…oh forgive me milingo!!!
What a nice country which has gone to the Dogs…. or is it that the Dog’s have come to the country
ukwa and his freind summer kambimbya are confusing everything
I would really appreciate if specialists in these issues can explain what this means to a common Zambian.Has it ever happened before? What is the lowest we have ever been and what is the highest? What practical solutions are there?
the country is getting poor…no money OMG ..how will we afford to buy shoes,bags and clothes
My friend Mushota MBA, ACCA, CIMA XYZ… may have the answers to your valid concern!
i will most def ask him/her !!!!!!!!!!!!!
Pa fWAKA PARTY ON WORK
First time I ve seen 38 blog post in LT and none in support of UKWA. Where are the PF diehards? LOL – Ungaleme mwebantu.
if the country does not have money how will we afford shoes, clothes and bags:(
You just need to lift up your head, look at the clouds to tell it will rain in the afternoon. All indicators that can send early warning – telling us we are headed in the wrong direction with this Ukwa govt are busy blinking. The forex rates (one very quck indicator) has told us. Now the reserves. Next will come the Infalation rates, the GDP etc and the shit hits the fan.
We hate to say we told you so. We hate to say we told you so.Tamuumfwa.
Damn!let’s sell the country and share the proceeds period, Summer and Ukwa seem to be confused.its not a try and error thing,its is serious business.
imwe bamabala..this is not Kanguya..but Mukuka..former PF cadre!!the country is rotting now ..eish..
So now Summer is No 3.Fili ukwa tuya.
According to data I have dug out from 2004 to 2010, the lowest point was in 2004. It was at US$345m. It started rising steadily and hit a mark of US$2,287m in 2010. I think this is the first time it has fallen since 2004.
The country is being run by an experienced man of action!! Brace for rough times ahead.
How do you expect the reserve to remain the same when people like Liato were burying billions in the ground. Its obvious that Liato’s friend’s are busy buying the dollar now so that the kwacha becomes weaker and the people start turning against the Government
Where are you buying these large quantities of the stupid capsule? Do you even understand that even if all former ministers ‘burried’ money and started buying dollars enmasse it wouldnt dent the reserves by 10%!! Simply there is no growth in the real economy or its contracting and if your PF lot were even half capable of growing our economy at the rate it had been growing in the last 8 years, there would be no reason to start depleting the reserves built up by the last govt! Dont embarass yourself and all of us with your silly kabova economic theories on this forum – try tumfweko!
What did you expect when you voted ‘Ukwa’ to plot 1, you morons ! You made the bed, so you should lie in it? Short-sighted indeed !!!!
If what ‘Me Me Teacher’ is saying is true, I think this is no time to be a CADRE or a CRITIC but to come together as concerned citizens and agree on the way forward. Some people were not there in the UNIP days and they never visited Zimbabwe at it’s worst that is why they can even afford to insult each other instead of being concerned! God help us like the children of Israel we need your intervention.
Rupiah Bwezani Banda’s deft handling of the economy whereby he built up forex reserves,raised maize production to surpluses,brought inflation to single digits and raised FDI inflows to unheard of levels was not deemed crucial by people more interested in names and regional origins.Now our rating has been dropped a notch down,economi growth rate has slackened and our forex reserves are down.Lesson is:vote with your head not your emotions.If the candidate is from western or southern let it be coz what matters is performance.
You aint seen nothing yet…
Well, the difference is in Sata’s pocket.
Real “monkeys” are in the maize field now.
Once we get back the $4 million + interest from Mmembe and the Nchitos our reserves will go up a little .What is the face value of the Post Newspapers? would it fetch a little bit more if we included Mmembe in the deal or would that dramatically reduce the price?