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Friday, July 3, 2020

President Lungu happy with Kwacha stability

Headlines President Lungu happy with Kwacha stability

President Edgar Lungu held meeting with An International Monetary Fund (IMF) team led by Tsidi Tsikata who is division chief African department in Washingston at State house. Picture By Eddie Mwanaleza/State house.20-11-2015.
President Edgar Lungu

PRESIDENT Lungu is happy that the Kwacha has stabilised and held firm for almost a month after it earlier plummeted against major currencies.

And President Lungu is soon expected to address the nation with a view to outlining the outlook for 2016 in various sectors of the economy.

Special assistant to the President for press and public relations Amos Chanda said the trends in the economy are due to measures announced by President Lungu in his address to Parliament and later to the nation through a press conference.

The Kwacha has in the past three weeks been on track and recorded stability which is key for easy planning by various stakeholders.

It is now trading below K11 to a dollar.

Copper prices have also shown some recovery signs and posted a rise of US$93.50 and is now fetching US$4,645.50 per tonne.

Mr Chanda said in an interview yesterday that President Lungu has inspired confidence in the business community who now understand that Government is also making efforts to ensuring energy security.

He said President Lungu’s administration is further creating confidence by diversifying the economy and stabilising the local currency.

And President Lungu will before the close of this year address the nation with a view to giving an outlook for 2016 in different sectors of the economy.

Mr Chanda said the President is expected to emphasise that “everyone should play by the rule.”

He said President Lungu will also emphasise and push the diversification agenda and the need to grow non-traditional exports.

Mr Chanda said the head of State will emphasise on infrastructure development in a streamlined manner, based on public private partnership through the Alexander Chikwanda-led Public Private Partnership Council.

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56 COMMENTS

  1. That’s the way to go president Lungu.u have demonstrated the quality leadership in u and prove to the great nation Zambia that your govance system is based on merit.keep on inspiring the investors and local citizens who are doing business.the stability of the kwacha makes us plan so well but I arge u to do more and address us the outlook of 2016.will rally behind u our able president may I also take this opportunity to wish u and the first lady a happy xmass and wish u Gods guidance for the 2016 and beyond.

    • Edgar is living on borrowed time. The Kwacha’s relative stability is artificial and again this goes to prove the President’s lack of understanding of economic fundamentals. This is the calm before the storm.

    • What’s there to be proud of? The Kwacha is still the worst performing currency in the world and you are giving yourself praise. This is archaic thinking coming from a drunk president.

      There is no confidence Lungu has inspired in investors. You expect an investor to come and set up a business in a country with perpetual load shedding? Don’t kid yourself ka Sunday Chanda

      Meanwhile Alesia HH

    • Mark Cudmore | Bloomberg
      18:56 23/12/2015
      London – It has been a horrible year for the rand as Fed tightening, commodity prices and China’s slowdown combined with a dire domestic situation to weaken the currency. And while 2016 will see some improvement in the macro picture, South Africa’s economy remains structurally flawed, pointing towards more rand weakness.
      Read on Dstv’s news 24 on the Business section under the title Rand may swap 2015 a nnus horribillis for a volatile 2016 and try to compare HH’s understanding as to why the Rand has devalued.

    • Peter Guest – CNN
      Updated 11:02 AM ET, Wed December 23, 2015
      “The worst performing currency of the year worldwide, according to Bloomberg data, has been the Zambian kwacha, which lost around 40% of its value against the dollar as the country’s exports plunged. Zambia is heavily dependent on sales of copper, the price of which has slumped by a quarter over the past 12 months.”

      Read the complete article and tell us why Lungu deserves to praise himself for poor performance

    • So why were you saying that nothing can be done because it’s a global problem? You failures always trying to blame everyone or everything else but yourselves. No more guess work next year we are voting for an economic manager and leader HH.

    • Stabilise my arse… ask him how much of the eurobond we have left now!

      When the US increased their interest rates a few days ago, the dollar strengthened. Almost every currency in the world took a hit… a slight hit, but a hit all the same. And the worlds worst performing currency held its ground like mountain of gold. Get real!

    • Change
      Don’t compare us with failed leaders like Zuma for he is in Lungus category.Compare us with Botswana where the economy is thriving while 1diots like PF and Zuma blame China

    • This is what happens when we elect visionless failures like one lazy bum Edgar who have never worked to targets in his life; they are happy with mediocrity and appalling performance….now because he has thrown I don’t know how much of the EuroBond borrowed at a ridiculously high interest to artificially “stabilize” as he says it he expects a pat on the back.
      Zambians 12 months on…where are those Zombies whom were shouting infintu ni Lungu from their jeeps during campaigns?

    • 6 months ago the Kwacha was fetching at K9 to a pound and today its at K15.76 and he is happy about this? I’m sorry I don’t get it

  2. These measures may address our current economic challenges but I also wish to point out that it is also key to see these measures being implemented. The amounts borrowed in the past month alone are worrying. Fairness in the political arena still remains key as this ultimately inspires confidence in the economy. Mr President, each area is connected and influences the other…

    • “…. Amos Chanda said the trends in the economy are due to measures announced by President Lungu…” !!!!

      NO, no no no no Mr Chanda, it is GLOBAL! And due to a rise in the Copper price!

      Have you already forgotten the tune you were singing yesterday? Ask Kambwili, he will tell you. It is GLOBAL!

  3. At least measures are been taken by the head of state so I appeal to all meaningful Zambian to support our president weather opposition or ruling parties because for now is the president of this country,hate speeches will not help us to build this country.next it will u aspiring for presidency who will be elected but still u will need the support of every one for u to govern well and produce positive result.

  4. When is he going to bring it back to K5 to the Dollar?

    Or Mealie meal back to K35 a bag?

    Or is he happy to leave this damage to our economy to become permanent? We need the sick patient to RECOVER, just stopping the bleeding is only first aid. What is the plan for long term treatment?

    • Long term treatment by Lungu is BORROW more Eurobonds, then use that money to buy back Kwacha until the exchange rate stabilises.

      What will happen in the long term when interest on this borrowing comes due is Zambia will be an economic disaster that will make Greece and Argentina look like a nice party! If you think the collapse of the Zimbabwe Dollar was spectacular, just wait and see what happens when the Kwacha implodes and disintegrates!!!!

      All Lungu has done is postpone the consequences of economic idiocy until after he tries to get elected in 2016, and temporarily hide the PF Governments massive incompetence and squandering of our resources away from the Zambian people.

  5. WHAT STABILITY? IN LESS THAN A MONTH WE HAVE FLUCTUATED FROM ZMK 14.60 to ZMK 9.5 AND NOW WE CLOSED AT ZMK 10.60 TO $1 AND WE CALL THAT STABILITY. KEKEKEKE ONE MONTH ATI STABILITY? BA PF KUWAYAWAYA FYE! !!!

  6. What stability are you talking about? MMD left the exchange rate at K4.7 to a US$ in 2011. Now PF has moved it to almost K11 to a US$. The cost of almost everything has gone up. The truth still remains that under PF things are very bad!

    • @K Bwalya, how much were the copper prices in 2011? or between 2008-2011? Your favorable, mature and informed response will be appreciated.

  7. @K Bwalya, how much were the copper prices in 2011? or between 2008-2011? Your favorable, mature and informed response will be appreciated.

    • Your fixation on the copper price isn’t the “wholesome” problem fixer albeit its significance. You remind me of the likes of Kambwili/Sata who when asked a question, brings in a “clincher” question and altogether diverts the matter at hand.

      I worked in the treasury department of ZCCM from 1996 for few years and we monitored the fluctuations of the commodity prices. However, the “forex” fall wasn’t this bad due to the confidence the ruling regime of the time exuded, which unfortunately the current one does not.

      The power outages, political suppression, unprecedented corrupt levels, unbalanced borrowings, plus many more other vices your government is allowing are a good recipe for bad currency performance! So stop asking the question when you can google as someone else has…

    • Yayaya
      you are the pipo who are part of the problem.If you are chewing with PF just chew quietly,dont insult our intelligence.Just to answer your fool1sh question the problems we are facing now have nothing to do with commodity prices.Everyone warned your illiterate dictator not to persue unbudgeted expenditure and he would not listen.All would agree that taking over from your late illiterate dictator was never gonna be easy.He practically destroyed the economy.The problem we have now is that an equally incompetent and sadly a spineless person took over.How much copper prices were in 2011 is not the issue.Ask how much Botswana s commodity prices were then and compare to now.Why is the pula performing?Why is fossile Chikwanda quiete?ZThe issue is about leadership failure.

  8. @ Chils, that is true, i believe by now almost everyone with the ability to read and understand know that, my question however is how much the prices of copper were.

    • I thought You would say that. Actually what you just said is either you do not know or you simply do not want to know. I value your response but if indeed the criticizing we place on such platforms reflects an objective approach and our genuine desire to develop our country tomorrow, then when anyone speaks, we should not be quick to comment but rather ask fundamental questions such as:
      1. Why? 2. How? 3.The argument A or B put forward, where does it come from and is it indeed founded on facts. 4. How will my comment educate or inspire an individual who reads my next comment?
      5.And what type of a person will my comment represent provided Lusaka times one day revealed our real identities behind the funny names like ‘yayaya’ we use.
      ~ i, not long ago read a rather immature comment…

    • @Chils. deepest apologies on the way the last line starts, forget to pay attention to the fact that there is a word limit thus it cut when i was trying to put forward an explanation on something.

    • Do you know that the copper prices were lower than what they are today in 2004 and investors were still flocking to Zambia to invest in the mines? One of the main reasons the mines were not closing is that our grade of copper is high thus reducing the cost of production per tonne. *****. I’m not an economist but even a baby can see that something is wrong in the leadership, there is no proper dialogue between the mine owners and the govt.

  9. Opposing everything the government comes up with will not win u votes…! Up & dn plz be mature…! With the copper prices going up, the kwacha will gain value and our economy back on track..! We know that upnd does not want our economy to improve coz they will have nothing to campaign on..! Kolopa.com

  10. @Yayaya, between 2011 and now the value of the kwacha has declined by 134%. The value of the kwacha is not only influenced by copper prices. Other factors that have contributed to the drop in the value of the kwacha include fiscal indiscipline under PF (eg the huge number of unnecessary by-elections, uncontrolled govt expenditure, etc); extreme levels of corruption under PF ( the cost of almost all infrastructure projects has been exaggerated by between 20% -100%, ask any contractor); policy inconsistency under PF (this has disturbed the mining sector and investor confidence); load shedding caused partly by incompetence at ZESCO, even though there is an attempt to blame everything on nature! The examples are many. Zambia is effectively in a recession! With competent leadership at national…

    • Very insightful. Thanks for the explanation on the many sectors too. I would appreciate it if the prices were stated for copper between the time frame i asked too so that we can the copper impact factor is ruled out.

    • K Bwalya please continue educating the masses. These are some of the reasons and I only wish cadres would put pressure on their leaders to do the right things then I wouldn’t be here complaining everyday.

  11. With competent leadership at national level the value of the kwacha would have declined by between 10-30% not 134%. The truth is that under PF poverty has significantly increased for the majority of ordinary citizens. For the politicians, their relatives and friends things are Ok for them not the ordinary citizens!

  12. @Chills

    Are you are mad, madala?
    Are you telling us that the Kwacha is the worst performing currency in the world?
    What or who is your source of this gibberish of information? Bantustan radio!

    Our neighbor, Mr Rand Zuma got out of the intensive care last week but just briefly. It is now oxygen and people are already calling for Zuma to go.

    • The worst performing currency is now with Kazakhstan which is an exporter of oil. Zambia lies a very close second.

      Bloomberg, Financial Times, Forbes still had the kwacha as the worst until the very recent drop from the oil exporter.

      We have nothing to be proud of though. Mistakes made contributed to the already precarious reliance on copper exports, many of those deals we made were not to our long term benefit as it is.

    • They have a reason to be bitter my friend!!! Electricity has just gone up by 200%. Next will be fuel. The price of almost everything has gone up by more than 100%. Anyway for people outside the country or ba some of us chewing parents monies maybe they do not notice these things.

  13. Kwacha stabilizing easy slowly! We ar starving as country. Next election HH. Why price of meal meal in nakonde is k110.

  14. This is all politics. The reason why the kwacha has held firm is because BOZ has sucked out kwacha from the economy hence reducing the extra kwacha banks and business houses from buying more dollars… This government is forgetting that by tightening liquidity has a negative impact because banks can no longer lend out… Still more, PF has to go if Zambia has to move forward..

    • You have been told that there has been editing involved and you assume that’s the case but what is your opinion about the image and the image being portrayal by your almighty Lungu in these fora? Are these shananigans he’s been displaying worthy of the office he occupies or a Chawama party Jameson drinkercadres he is? Is he the type that can turn around an economy in trouble like ours? Can he negotiate with serious minded businessmen to attract investment and save jobs? Give over and SHUT IT!

  15. Clearly politics have blinded this forum. i dont see anything wrong with the president expressing happiness at the stability of the kwacha. yes the kwacha is still under pressure but it has stabilised.at least businesses can plan. the second step is to improve perfomance. even in hospitals a critical patient is first stability then other interventions follow

    • Have ever run a business? What planning are you talking about ….there is too much uncertainty from these people coupled with constant power load-shedding and black outs even when we are importing electricity at a cost of a millions of dollars a month.

  16. Economics made simple!!! Pump in borrowed dollars and stabilize the currency then you start dancing, ba PF please!!! Someone is talking about the rand which is being mismanaged by Zuma for example two weeks ago he had three finance ministers in four days. Bad example. How come ba PF never compare themselves to an economy like Botswana across the border? Its because the Tswana’s manage their affairs in a professional manner so you would rather compare yourselves to fellow failures and chancers like Zuma.

  17. “Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God. Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation.” Romans 13:1-2

    If we are Christians we must pray even for Lungu. God has ordained him to be president so as to test you and me. We profess to be Christians but we do the exact opposite. You SDAs your books do not allow you to participate in politics but you do. WHY?

  18. Ba Kachema,keep on insulting us.We know how to lecture you under 5s. We re thumping you heavily next year and finish you off completely.You guys dont know politics.You think politics is insulting everyone,opposing everything and projecting “moses”HH as the solution.
    Aleisa,Aleisa apitilila.Alepititilila nafuti next year.

  19. Comment: I am very great iful and waiting to see how kwacha is stabling,this is good new sir president;it not an easy job us far am concerned,however,even though it may take 5 years to drive the enconomy well,you have shown the kind of leadership you have to the people of zambia.

Comments are closed.

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