The limited supply of forex on the interbank market has put pressure on the kwacha.The low supply of U.S dollars has forced the kwacha to depreciate.

A check by ZNBC Business News in selected bureau found the kwacha trading a K7.31 against a dollar.This is down from yesterday offer rate of K7.00 bid and offer price respectively.

Financial analysts say the kwacha is expected to remain under pressure in the short term.

A Financial Analyst Mambo Hamaundu says the limited supply of forex could put pressure on the kwacha.Mr. Hamaudu says depreciation of the kwacha also have an impact on importers.

He was speaking in an interview with ZNBC News in Lusaka.

Meanwhile, the Jesuit Centre for Theological Reflection has urged government to address the depreciation of the Kwacha against other major international currencies from a holistic perspective.

JCTR said in a statement to ZNBC News that government should focus on long term solutions that inspire confidence in the economic sector.

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23 COMMENTS

  1. Elo mwala Dancer NYAU TUNE! We had a choice between successful economists and yahoos and we got the yahoos. We have a government that is hoping for the Kwacha to ride itself out of this spiral because they have no idea what to do. We warned about this impending implosion a week after the election and yet no policy directives have been issued to address the situation. E Chikwanda-nomics mwalefwaya. Elo mwala Dancer NYAU TUNE. We told you so!

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    • zambia has ALOT of super qualifed economist,,, are you telling me that nobody has the solution for this kwacha???,,,,
      thats why i sometimes like Mugabe, the man looked at his zim dollar and saw how it wa collapsing like lungu, he just threw it away and abopted US dollar,,, problem solved,,, now you wont hear that zim money is weakening

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    • We`ve always told you that PF has no smart people. The solutions are there, the problem is you`ve incompetent and ignorant people.

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    • Kaily “if into knee” Lungu. PF are a bunch of failures & the economy will continue to plunge b’coz they are clueless.

      The Kwacha is losing value like bathing soap, otherwise come what may, PF must be voted overwhelmingly out in 2016 or September this year.

      “Lungu, Lungu, Lungu” day in & out but the economy is not keeping up to no good. This is what happens when people vote for visionless leadership.

      Enjoy your Lungu & rotting economy of PF!

      The Skeleton Key
      ~206~

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    • Do you all remember how the KWACH was falling around 1985 and no one thought it was going to get worse. The first reason was KK had been screwed by IMF and he talked trash about them. Now today it’s because the Country has sidelined Dr Guy Scott, so Zed’s nuts gonna be squeezed and accusations will be mining TAXES, copper price etc
      Rainbow Party, here we come 2016.

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  2. Nobody should complain because the wise rejected this goverment but the unwise thought tribe and regiins matter.People were called names who saw nothing good in this goverment.
    Ifintu ni Lungu

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    • You and your house hold can have him be your president. Seeing that you have an inferiority complex. The Kwacha was falling when scott and Sata were in office. Only Mwanawasa was able to rid us of debt, so calm your butt.

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    • I dont kno,since the side lining of guy scott,the kwacha has been depreciating,i think we need to ask this man a few questions

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  3. During the run up to the 20th January , I was in northern , luapula , and muchinga provinces where I used to hear people saying ” ifintu ni Hendinga Rungu ” whilst other provinces were saying ” ifintu ni Edgar Lungu ”

    Some were saying that this is PF’s funelo ( funeral ) and urged pipo to give a massive yes vote in the bye “erection “(election)

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  4. The depreciation of kwacha cannot be solved by the the person u claim to be an economist(hh),the thing is u don’t simply understand the cause and the solution to arrest the free falling kwacha (1) china is struggling with there economy and because they account or buy’s 40% of copper worldwide ,obviously the demand for economy will become less further more the copper price at int’l market has kept on falling from 7600us to 5600 us and copper being our major export its likely to effect our economy as well as our currency.

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    • Ignorance and arrogance is what you`re good at. Just admit that you`re clueless.

      Leaders are elected to fix short and long term problems, if they are not able to, then they are incompetent, period.

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    • The issue of the kwacha/dollar is also compounded by government overspending and no cushioning. Sometimes it is also due to lack of investor confidence. Unfortunately all the above will affect the kwacha’s standing against the dollar!

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  5. @Nkana supporter first of all I am also a calamper! That said. A good economist would have had enough in reserves left over from the good times to cushion these hard times. A good economist would have diversified our economy when we had a surplus. A good economist would be encouraging more FDI to bring in much needed foriegn exchange. A good economist would not have misused or good credit standing and have nothing to show for it, a good economist would negotiated less speculative contracts for crude supply. A good economist would reduce the waste by not having such a bloated government. A good economist would use expansionary policy to create more jobs. A good economist would tax wisely optimize collection while maximizing efficiency of collection hence encouraging job and economic growth

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  6. The truth is the PF has the best kaponya mobilisation strategy but they fail the economic management test. Number zero! Accept or not PF economy is number Zero!

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  7. PF has no smart people to sort out the mess that the country is in. The majority of them are clueless and arrogant.

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  8. The solution does not just come about like that. So many factors involved and looking at our small economy full of corrupt IDIO_TS, kaya mwe.

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  9. Kindly check other world currencies against the dollar right now. You can google it. You’ll be able to tell then, whether the Kwacha is depreciating or it is in fact the dollar that is appreciating

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  10. Iwe we are talking about our kwacha,not the dollar..you don’t use in Zambia may be you don’t live there

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Comments are closed.