Opposition UPND leader Hakainde Hichilema has castigated State House for suggesting that Government could reintroduce exchange controls to arrest the free falling of the Kwacha.
President Edgar Lungu’s Special Assistant for Press and Public Relations Amos Chanda on Sunday warned that Government may resort to foreign exchange control if the Kwacha slid continues.
But Mr Hichilema said in an interview that reintroducing foreign exchange controls will only worsen the situation.
‘Anybody talking of exchange controls belongs to the archives, anybody talking about exchange controls belongs to the dustbin,’ Mr Hichilema said.
He added ‘Once we reintroduce exchange controls, they will have a different effect on the Zambian economy. You remember what different the Kwacha, the PF introduced SI 33 (statutory instrument Number 33) intended to restrict foreign transactions, what did it do? It damaged the Kwacha, why? because that measures, which was foreign exchange instrument which came through the PF administrative measure, the Kwacha was damaged because we are an import dependent economy, we are not an export led economy.’
Mr Hichilema continued, ‘Now if you reintroduce foreign exchange control, it will put pressure on the few dollars in the market and the effect would be a further depreciation of the Kwacha.’
Mr Hichilema also charged that the markets have totally rejected President Edgar Lungu’s leadership.
‘You now need K10 to buy 1 US dollar, that is over a 100 percent depreciation and most of that depreciation has come from Edgar Lungu’s presidency of how many months, 8 months. this is a clear message that the market is saying they don’t like Edgar Lungu.’
‘Why don’t they like Lungu? Is it because he is tall, no, is it because he sleeps when meetings are going on, maybe not, why they don’t like him, because they believe he has no capacity to run the economy.’
The President needs an experienced expat, who has worked and lived in Zambia, on his State House team
He is still popular with the illiterate massed. He needs to harness their collective energy and zest for the benefit of the economy and future generations
@Philip, the president has no capacity for any kind of strategic planning. Blaming everything on nature and external forces is all he can do. What we are witnessing is the apex of hi abilities. Obama took over at the height of the economic downturn>Look at the US today and contrast that with the mediocrity back home. Edgar must go
The sleeping while having meetings is probably the main reason.
HH ,a true visionary has spoken and his words comes to be.
Why introduce exchange controls in this day and age? Sata tried to introduce some kind of exchange controls through f00lishly thought out SI instruments which HH condemned from the outset. HH was condemned by most dull PF cadres until reality hit home when the Kwacha depreciated dismally thats when fossil Chikwanda decided to scrap them to save the Kwacha from being worthless.
PF cadres have very short memory thats why they are very dull beyond redemption.
Viva HH please continue to educate these PF f00ls, maybe one day they will see some sense in what HH and most us learned Zambians see.
Very true, anyone even remotely thinking or dreaming of exchange controls does not belong to the civilized world. Can those in government , Edgar and his friends tell us why our Kwacha is the worst performing currency in the world. Are external shocks only affecting Zambia or is it the lack of understanding of economic fundamentals. No having a vision is catastrophic and Edgar has ably demonstrated that
UPND does not understand the current global economic trends and their criticism is clearly due to envy and jealousy.Do they have the capacity to create rain ? Do they determine how much copper China should import and the cost ? Do they have eyes to see the roads they are using today ? Do they understand that for the first time,no farmer is complaining about the marketing of maize,Do they know that civil servants got their best salary increment under this govt ? Do they know that Chiefs are better looked after by this govt ? Do they know that OVC’s are now leading a better life under ECL through the social cash transfer ? Give credit where it is due ba so called HH.
We do know the answers to your childish questions. Do you understand the failures of current administration? Apparently no. Please check what specialized press (definitely not Daily Mail or Post) is reporting about PF, Kwacha and economy before making childish questioner.
By the way, this is how Kwacha reacted to the intervention of input of 120 Million Dollars:
07 September 2015 15:30 9.8869 9.9069
07 September 2015 12:30 9.8483 9.8683
07 September 2015 09:30 9.9944 10.0144
04 September 2015 15:30 10.0192 10.0392
04 September 2015 12:30 9.9475 9.9675
04 September 2015 09:30 9.8056 9.8256
03 September 2015 15:30 9.8386 9.8586
03 September 2015 12:30 9.7828 9.8028
03 September 2015 09:30 9.5639 9.5839
Janet weo,
Are these the best performance indicators you can come up with for a president?
How do you allow people with low intelligence quotient take to advantage of you? What happened to lowering unemployment, improving the health profile of the country, stabilizing prices, inducing economic growth (broadening the tax base by creating a conducive environment for small indigenous Zambian owned business to thrive), punctuated by inspiration of thoughtful and intentional chess-like moves. Ifibwatalala cimbwi tefikala nama ikata!
Wake up, Janet. Success in global business is not act of god; unplanned and unpredictable event. Rather, it is a brainchild of astute leadership, which obviously severely lacks in our Zambia.
When cattle are grazing in the Namwala plains,don’t you control them if they are heading in a wrong direction especially if they want to enter a maize field threatening crops which might lead to hunger ? Do you give them unlimited freedom because they have a right to graze ? Such kind of thinking is parochial in my view.
You are very dull my dear Obatala.
Obatala you are right, but you don’t let the lion control the cows, you allow Kachema to do it. In a free market like ours, the market sets the prices not the politicians. They are lions and vultures they don’t mean well.
@Obatala,
And you still think Namwala is the only place in Zambia with cattle hey? You will woke up to rude shock when you realize that the best cattle is now coming from the Great Northern circuit. Times and things have changed bwana. By the way do you even slaughter those thin and malnourished cattle of yours for the poor villagers. I understand you guys keep cattle but some of your people have never tasted beef, sad indeed and you think you can enter State House, patali!!!
But HH Zoona.Ukamba Kuipa
Although lately there has been a global economic outcry, Lungu should be advised not to miscalculate. At this juncture, taking such unothordox measures may have far reaching consequences even after the global market stabilises. An economic advisor is of great help at such a period when most countries are at crossroads economically.
who is the president of the republic of zambi
Zambia is edowed with a lot of dull people.You do not have electricity for 12 hrs in a day because of mismanagement and you are still supporting the economic mismanagers.Now the ZMW is at 10 and you still think thus okay dullness oooh shall kill most Zambians
The problem with hh is , he thinks is the only one educated in Zambia and who knows economics awe boss.
How do you know what he thinks? He has never told anyone that….
This man called HH is so desperate to be president. But I think he will again lose in 2016.
You are another dull chap like Obatala. Ba PF do not allow your hatred for HH to burn the country.
Where is the learned Senior Citizen? This thread is yearning for your input
It is at these times that a country needs a bullish leader – but who knows what they are doing. Zambians and the economy need to be held by the scruff of their necks and dragged into a new dispensation. Democracy is not necessarily compromised by being tough, strategic and getting people to real work.
He is just a bitter id1ot!
Insulting a person you have never even talked with?? Who is bitter now? Huh? What does that make you?
What matters in this case is how much controls are put in place to reduce the US$ haemorage. Surely exchange controls had a negative effect in the past but the debate should look at changes that have taken place since. I believe we need to manage our forex properly. At the moment it is free for all!! We lack an integrated system for monitoring the movement of forex in our economy and that is why these guys (both government and opposition) are now guesing “ukusabaila fye”. We need to see $ from our exports and tourism and use the $ for to import things we can not easily produce. Our economy has been bleeding $ to others for a long time! Simple example beareaux d’echange have a restriction on how an individual can transact,but every is manual so the control is only in theory.
Thank you Janet! This UPND is the one that belongs to the dustbin because their HH understanding of economics is feeble. America, the first world has gone through similar challenges, except that these guys call it recession, now is HH telling us here in Zambia that he is brighter than all the Americans?
Does this HH even know that there is a rain pattern in Zambia where sometimes we experience normal to above normal rains leading to floods and sometimes we experience partial or total droughts? This is nature and normal, but what has been his take or solutions in the past? NIL.
So HH must not try and come out as if he is the only brainer in Zambia. This guy, I even doubt whether indeed he got this degree on merit.
Let HH know this, ECL and PF will come out of the temporal setback…
Patterns is the key word. It implies predictable occurrences. Yet, PF failed to predict the inevitable next turn.
Continued..People still transact above the threshold and there is no monitoring mechanism to catch the cheats. If some is importing or exporting there are no integrated electronic mechanisms between the banking sector and the ZRA (Customs) to ensure forex sent out brings in the amount of imports it was requested for or exports as reported bring into the economy the $ as indicated on export documents. So the net effect is exports of $ through both Zambia’s imports and exports as foreign trade transactions (in ZRA) are not reconciled with the Banking sector to detect our $ leakages. One wonders what the so called Financial Intelligence unit does which cannot think and inform intelligently.Big economies including small stables ones have one way or another of managing forex e.g…
Continued..South Africa,Nigeria,Botswana. Government needs to move cautiously and implement holistic measures that can even help in catching some of these congromerates who have been cheating on tax.
HH is talking like this because his interest is to protect his business not our economy. These are the guys raping our economy daily. Exchange control is important at a time like this.
Explain how and why
Don’t just dump and run!
“Overall, we find that the recent appreciation of the U.S. dollar has had a significant effect on U.S. firms’ profits, especially for firms with high foreign sales. The dollar’s strength likely explains roughly a third of the recent decline in profits earned from foreign subsidiaries”……….. Source Federal Reserve Bank July 2015
So HH please don’t think you are clever that most of us. Am not an economist but just reading this article suggests that its not always true that when a currency gains then it is a positive for a nation NO! In Engineering we say:
“To every Action there is an equal and opposite reaction”
So the depreciation of the Kwacha has some positives because it encourages serious minded businesses to think “out of the box”
Can this confused and desperate Under 5 explain to the miners why he auctioned our mines to his friends for a song? Which was the source of money did HH have to exploit and buy those cattle he claims he has came from? Is it not at the expense of the now poor miners he and his friends sent to early graves and left the once vibrant Copperbelt towns as shells?
We will explain to all these miners who were not there at the time HH privatized the mines that infact the same person pretending to care for them is the one who sold off all our mines, no wonder he even has the pomposity to say he will chase KCM and bring back his cartel crooks called Anglo America! This time around, our people will be told the truth staring from this moment about this HH and his contribution to the fallen mining…
Your reasoning sir begs belief! I think HH was a CEO of Coopers & Lybrand and Grant Thornton (GT). As CEO we cannot be surprised that he had resources to invest in cattle. GT were the corporate firm appointed by Government as Receiver of the Luanshya mines. Receivers are an agent to manage a business which is failing to manage its affairs. They are paid on a fee. It is not cheap, and lucrative to the receivers.
So Mr/Mrs Ichikwakwa, you can blame the right person(s) who failed to run the mines profitably.
Where were you, teenager?
And why does the Under 5 look so dazed with red eyes? Is it because he realized during the debate that he is actually the dullest of all the contestants? Armchair analysis by this Under 5 is the problem ’cause when it comes to reality, its different ball game all together. And this is the man who has cheated himself that he is the panacea of ALL problems and troubles. Its hot to run Governments iwe Under 5 and so just concentrate on what you know best being a kachema period!
just because you hate someone doesn’t mean u automatically disregard their advise
If hh can Talk about global economy and relate it to what is happening in Zambia I can see sense in his rantings. The fact that he is dogding global economics makes me wonder what an alternative leader he can be. This clown in hh thinks he is addressing cows in his village who are not seeing what is happening globally.
Apparently you are not saying anything yourself. By the way, how do you know what he thinks when he has not said a thing to you?
THANK YOU MR. PRESIDENT HH FOR HAVING OFFERED FREE ECONOMIC EDUCATION TO THE LUNGU ILLITERATES. LUNGU IS BUSY EXPERIMENTING ON OUR ECONOMY, AND DESTROYING IT IN THE PROCESS. WHAT IS WRONG WITH EDGAR LUNGU? WHY IS HE SUCH A DULL CHAP? DID HE REALLY PASS AT SCHOOL TO QUALIFY AS A LAWYER? IF LUNGU WAS A SERIOUS PRESIDENT IN WANTING TO REVAMP OUR ECONOMY, HE WOULD HAVE LONG RELIEVED CHIKWANDA OF HIS RESPONSIBILITY AS MINISTER OF FINANCE. CHIKWANDA IS AS GOOD AS A GRADE SEVEN STUDENT. CHIKWANDA IS NOW OBSOLUTE, SO WHY STILL USE HIM IF IT IS NOT FOR LOOTING OUR COUNTRY? LUNGU IS NOT HONESTY TO THE ZAMBIAN PEOPLE. LUNGU IS IN A SERIOUS SIPHONING SYNDICATE. I TELL YOU LUNGU WILL NOT EVEN CONTEST NEXT YEAR’S PRESIDENTIAL ELECTIONS.
All you armchair critics have really not understood what is at stake here! And more importantly Lungu and Amos Chanda are struggling with something that is completely beyond their comprehension. In this, they are babies that have not even learned to walk yet!
In this day anyone advocating exchange controls should just be taken outside and shot. His brain is in worse condition than any Chinama patient!
At least Chikwanda had the sense to condemn it.
For those ignorant people advocating exchange controls, just Google George Soros and how he BROKE THE BANK OF ENGLAND! And took one BILLION and put it in his own pocket!
All because of STUPlD POLITICIANS!!! Must we do the same here in Zambia??????????
HH is right. One of the main drivers of a currency is the perception of the President’s popularity:
International Investors like to see a Strong, visionary & experienced president, because they prefer a single national decider selling the agenda & fear a fractious parochial Government. ECL does fit this description & the latest comments from Amos, Kambwili & Chikwanda are testimony to this.
UPND bitter pipo and there free mansoni( IMF) hhIis a pertual looser.He will die jst like that
PF CADRES ALWAYS SHOWING BITTERS ON OUR INCOMING PRESIDENT,THEY HAVE REALISED THAT THE WIND OF CHANGE CURRENTLY BLOWING IS TOO HUGE TO STOP WATCH THE SPACE YOU PF CADRES!
Comment: The problem with H H ,he thinks Zambians are stupid.
COULD BE RIGHT. IT IS STUPIDITY TO KEEP VOTING FOR INCAPABLE PEOPLE AS PRESIDENTS, LIKE THIS LUNGU, VERY INCAPABLE TO MANAGE THE COUNTRY INDEED.
HH is trying to defend the Classical Theory in economics which says to reach full employment in the economy you let market forces to determine the supply and demand, however, the supreme leader of the UPND is not also mentioning that this theory was challenged by Keynes Theory which also proved that to reach full employment some economies needed government intervention at a particular point just like China and other powerful countries does when faced with a recession or what ever name you want to call it
ba H.H ukulanda kwali anguka.ukubomba kwalishupa.and second the DEVIL you know is better than the ANGEL you have not seen.