DESPITE the depreciation recorded over the last few weeks, the Kwacha has generally demonstrated its overall stability and the resilience of the Zambian economy by remaining within the acceptable margins of variation and fluctuation, Secretary to the Treasury Fredson Yamba has said.
Mr Yamba said in a statement released yesterday by Ministry of Finance public relations officer Chileshe Kandeta that the kwacha will appreciate soon, adding that under similar circumstances, currencies of less resilient economies would have crumbled.
“Over the last few weeks, pockets of pressure on the local currency have continued due to the stronger international performance of the dollar, poor copper price outlook on world markets and speculative private sector decision-making associated with projected uncertainties due to the upcoming presidential election,” Mr Yamba said.
He said under similar circumstances, currencies of less resilient economies would have crumbled.
“Like other commodities, the price of copper has continued to retreat thereby lowering enthusiasm of balance on balance of payment expectations.
Clarity in the national policy direction after the presidential by-election will certainly help the domestic economy and the Kwacha in particular, to rebound and attain stability levels against major foreign currencies sooner than later,” he said.
Mr Yamba said “As at January 13, 2015, oil and copper prices continued to stagger. The exchange rate of the Kwacha against the dollar also depreciated from K6.49 recorded on January 6, to K6.55. During this period, the Bank of Zambia has been prudent by making interventions to smoothen out volatility in the forex market.”
Meanwhile, the Lusaka Stock Exchange (LUSE) all-share index increased by a margin of 0.18 percent during the week, closing at 6,151.30 on Wednesday January 13, 2015 compared to 6,121.26 on January 6 this year.
Price movements were recorded on Copperbelt Energy Corporation and Lafarge shares.
And Mr Yamba said copper prices declined by 4.5 percent to US$5,915.00 (US cents 2.64 per pound) on Tuesday January 13, 2015, from US$ 6,191.00 (US cents 2.76 per pound) registered on Tuesday, January 6, 2015.
He said this is the weakest in over five years and is largely attributed to weak industrial activity in China and weaker global economic growth, coupled with an increase in global copper supply.
Mr Yamba said crude oil prices also continued to fall and dropped by 12. 3 percent to US$ 46.58 per barrel on January 13 from US$.53.11 per barrel registered on January 6 this year
Yes soon and very soon, when HH takes over next week, that kwacha will be $1 = K2.
He commanded you to reduce fuel price, and PF where about using HH’s demand to win votes and reduced fuel price to even cheaper that cost.
I will not hold my breath!
Hw?when copper prices hav hit a 5 yr low?
If you have a sick or very old president, the currency and economy also weakens.
If the man at the top is dull, the whole system becomes dull.
Jokes aside, this is an intellectual debate and most of the issues highlighted here have got nothing to do with EL or HH.
HH is nowhere near oil and copper prices
I am very surprised especially with the speculation that we might hit a recession again. Places in North America are busy preparing for a national recovery as the oil prices have already started dropping. And here we have Zambia saying the Kwacha will appreciate soon. Whoever said this needs some serious macro and microeconomics. Its not nice to mislead people and give only accurate information.