The Bank of Zambia has, in an unprecedented move, advised the public to desist from taking any speculative positions on the Kwacha, as this may result in heavy financial losses on their part when the Kwacha reverts to an equilibrium path that is consistent with economic fundamentals.
In a statement issued to the media today, the Central bank said that as the prospects for the global economy improves, the copper price has started going up reaching a high of US$6,952 per tonne on 28th May,2014.
This comes in the wake of the Kwacha’s record depreciation against the US Dollar which has seen the local currency trading above K7.00 per dollar.
Below is the full statement.
What a shame!!! Issuing such useless statements instead of talking about the measures they trying to enact to save the Kwacha.
We told you not to over depend on copper but tamwaletumfwila.
The country is on autopilot. ….it is evidently clear that they empty tins are utterly clueless.
i doubt if this statement from BOZ,,,,,,and if it is then Zambians are in serious trouble,,,,, just look at the TELEPHONE number ; 228888 of the assistan tDIRECTOR: communication,,,,,,,i looks like its those nigerian connmen or those street paper distributing ng“angas in cairo road which can never go thru
The Assistant director cannot even put his name there. The signature looks like that of a casual worker at Zesco
Just issuing this statement will make the Kwacha drop another 10%!
These clowns are really clueless!
THE MARKET DECIDES THE RATE! Wake up you F00LS, or are you really so STUP!D???
I wish i had traded his currency pair usd/zmk.
You PF f00ls
Who can bet on the useless kwacha? Stop deluding yourselves you f00ls. The kwacha is falling because of your recklessness and economic mismanagement.
What is causing the kwacha to fall at such high unprecedented rate, is that you PF minions have created a an extremely toxic political atmosphere which is causing a lot of anxiety and uncertainty amongst investor and business people. They feel so insure to keep their saving in Zambia because the PF can not guarantee a peaceful political atmosphere.
Even amongst your selves within PF, you are busy shipping the dollar out side for fear of the unknown due to your dictatorial tendencies.
Change the way you are conducting your political business and restore tolerance enjoyed pre 2012 and see how things will change…
We have a batch of extremely dull people at bank of zambia and ministry of finance who have no idea what they are supposed to do. Experimenting with the economy in PF government is the order of the day.
Thats the ugly side of depending on one commodity as a forex earner when the price of that commodity takes a dive the economy goes with it.
It is more than the floor price of copper on the LME. We have the Kabimbas of this world who are walking while dreaming. We need managers in this country not political noise makers!
Come on i know it is easy to point fingers ,but copper has a big bearing on this.The whole global economy has taken a beating.Even the South African rand has suffered from the global shrink.The Russian currency is another victim it reached its lowest in 5 years this year after it lost about 10%.
@soulosi
i like your incomplete comparison of racist russian currency down only 10% worse in 5yrs to Zambia down what percent??? worse in zambian history,,,,,,, looking for answers in the sky as the president Sata takes a rest in recovery from despressing vegetative state
@ndobo i can see that you haven`t got my point when i used the Russia currency as an example.I used it as an example to basically say that the whole global economy is suffering.The Mexican Peso is another good example and so is the Iranian rial which also lost 10%.Only a few currencies are enjoying positive growth like the Indian Rupee.
True that.Even the dollar itself has lost against major currencies like the British pound and the Chinese Yuan.
@soulosi
maybe the is point what percentage has your PF kwacha lost ,,, to become the worst perfroming cúrrency on earth today?? (somehow it sounds like a shilubemba curse),,,,,,,,,,,,,,,,,,,,, while other currencies are agreeably taking a beating but somehow holding up,,, your PF kwacha remains in a permanent vegetative state,,
your professional comment sir
@ndobo i can see that we are not talking the same language here.I`m talking in financial terms as in relation to what is happening on the global scale ,while your point is more political than anything.What has bashilubemba to do with this ? I rest my case man.Let me just continue watching this movie.
Saulosi @5.4. says,
“I used it as an example to basically say that the whole global economy is suffering.The Mexican Peso is another good example and so is the Iranian rial which also lost 10%.Only a few currencies are enjoying positive growth like the Indian Rupee.”
Hey buddy, currencies do not experience growth. When you choose to criticize somebody, you see, you are ought to demonstrate to the world that you know what you are talking about. Your use of the word growth in this context tells me you are no better than the people you are criticizing.
I am just saying….
No Saulosi, this is NOT ugly side of depending on one commodity but a ugly side of human incompetence coupled with huge dose of misplaced arrogance in search of non-existing justifications for directionless administration composed by a bunch of clueless demagogic failures.
The Russian currency has suffered because of Putin’s hand in Ukraine and sanctions. All US businesses have had to withdraw their money from Russia.
Boz themselves said that one of the major reasons for this depreciation is speculation and if we drill down, we will find that this speculation has been caused by the government’s lack of clear fiscal and economic policy. No one knows what their plan is so one can only speculate that THERE IS NO PLAN apart from borrowing and doing ma knee-jerk reactions to changes in economic variables. So this comparison to other countries to me does not excuse the government’s role in exacerbating the mess further because of their lack of competence in dealing with these things. PF would be surprised at how the kwacha would suddenly gain if they took the simple decision of removing Gondwe and Chikwanda. That way the speculation would turn positive!
This is very amateurish and actually illegal for the bank to do this. Am actually shocked!! Looks like Bank of Zambia is actually speculating as well. What if copper prices don’t go up and the Kwacha heads towards K10 is BOZ going to compensate the people who believed them and took a counter bet on the Kwacha? This is very dangerous and wrong for the bank to do so. People who trade in these financial instruments know the risks very well and it is not the job of the bank to warn people of those risks. This is really careless coming from a Central Bank. It could actually be regarded in some quarters as insider trading or misleading the market if the Kwacha tanks to K10 to a dollar, BOZ could be sued
You are missing the point.They are basically advising people to desist from betting whether for or against the kwacha.
Kamudala aka nako.Learn to read before commenting.They are not telling anybody to take a speculative position.Mwaile lisa kusukulu imwe bene yama ? Looks like you have serious comprehension issues.
Let’s be fair, MMD Chief bootlicker, is right, unfortunately.
Love/hate the guy, but in this respect he is right on the money.
This is laughable and definitely a first who is Fossil Chikwanda and the incompetent BOZ to advise me where I place my bets….the mere fact that the empty tins are in charge makes it good bet.
It is shameful. Can you prove yourselves that Kwacha has gained when in the actual fact you got the government when kwacha was between K4-K5/US$. U wawa tabula kabepesho.
haha, the fool who wrote the statement couldn’t even put is name to it? Just a signature?
My first thought, too. Such communication is usually done under duress
Saw it as well – so unprofessional!!!!
what has become apperent is that the health of his excellency is tied to the dollar. The more sick he gets, the dollar follows suit. Why? Because it drives him away from the driving seat leaving room for plunderers who know that their days are numbered. The man whose onus is on to develop sound economic policies has been away from his duties fo a while. The nation is on auto piliot. We are likly to witness the worst economic plunder evr seen in this country. The wise thng our president shud do is to rest and save our nation from destruction. He had gud plans bt his health cant allow. This free fall of the kwacha against other major currencies is an insult to all zambians. We wil becom famous as a country full of chicken heads and retards world over. And yet the cause of all this disaster…
Your parody misses the punch: “tied to the dollar” or to the kwacha?
are our disatrous politicians!
Even our reserves have gone down,our kwacha -down,our national pride -down.At this rate I think i can bet with investor George Soros on the whole of Zambia going down.
They are basically scared that if more people hold their money in dollar, then less kwacha will be availabe. Which will further harm the kwacha. Despite the problem being global, the massive slide of the kwacha has been compounded by poor government economic policies and the uncertain political direction following the poor health of the president.
Must we blame God for such little brains we got!
As of 30/05/2014 the exchange rates of our top 5 major trade partners is as follows :
Switzerland (Swiss franc)- CHF 1 = ZK 7.74 ( Accounts 34% of our export destination)
China (Chinese Yuan Renminbi) – CNY = ZK1.114 (Accounts for 28%)
South Africa (Rand)- ZAR1 = ZK0.667 (Accounts for 6.1%)
Democratic republic of Congo (Congolese franc) – CDF1 = ZK7.49 (Accounts for 4.5%)
South Korea (South Korean Won) -KRW = ZK6.81(Accounts 3.7%).
Our 5 major exports are Refined Copper (63%) , Raw copper(11%), Copper plating (3.2%), Cobalt (2.9%) ,Raw Tobacco (1.9%).
Political stability is not the only major influence on the currency strength, in our case copper price is playing a major role in determining the Kwacha strength (in addition to other factors )
Its NOT the government’s…
Diamond prices fell 2 years ago but did the Botswana pula lose so much ground against the dollar.Instead investors have continued pouring into the country because of political stability. PF ,it’s time you came to the realization that you have failed this country because of your policies which are scaring away potential investors period. YOU HAVE FAILED!
Ba RED SQUARE naimwe !!! Read my post again ala !…….As I said ” Political Stability is one of the factors pushing the kwacha down, but not entirely that, mainly is the Copper price exerting much pressure on the kwacha…IN ADDITION TO OTHER SEVERAL FACTORS !!
The last time I checked, we had Ministry of Mines. What do you mean its not the government. Diversionary tactic really to blame copper as if copper lives on the moon. When KK said we diversify, 50 years ago, what happened. We are wallowing around the same murk for 50 years and you say, Oh no its the copper, its not us. C’mon.
why dont you people listen..lets use USDollars as in zimbaabwe…..
as we have failed in all aspects of our country…………
aKalindawalo ndimwe mfumu yopanda mbumba !…LOL
We haven’t faild we can still revive our kwacha
Chikwanda and Michael Gondwe are just reeling from shock. This is no time fir outdated economics. Let us devise a way of pinishhese two shameless economic sabotoirs. Why can t they apologise. Let us rise and save Zambia from the clutches of eviil.
Even if we took these matters to betting houses, no one would put a counter bet agaisnt the fact that by december £1 will be trading K16.00. Fuel will cost K 15.00 per litr. As long as Sata is still alive and Gondwe/Chikwanda still holding on to thise posts the worst is yet to come.
ZP Zabwino Palibe. You are spot on. You have found the solution to this problem.
Admit that you have failed. Bring back Fundanga and Magande or Musokotwane. Rupia come back and Challenge the cobra.
@High IQ Levels –
it is not the job of the Central bank to advise currency speculators and the like how to conduct their business.
This statement just further confirms that these people have no idea what they are doing. How pathetic to see the Mr. of Finance and Central Bank governor giving credence to such statements. Indeed the economy is on auto-pilot as there is no one steering.
HOW DO YOU HAVE GONDWE AND CHIKWANDA IN ECONOMIC DRIVING SEAT AND EXPECT GOOD RESULT.
fcuking idoits, you have really screw#d your own country!!!
We really have *****s & embicilies running the country. Imagine, the head is in vegetative state athough he was resurcitated for an hour. Finance there is fossil fast asleep wen its day time. bank governor is a disnausor busy smearing himself jaribu.
HH how can we solve this problem? PF has failed us. I wish I never voted for them. Am sorry mother Zambia I contributed in putting us in this mess!