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Saturday, August 15, 2020

EAZ cites unstable exchange rate as 2016’s deficit

Economy EAZ cites unstable exchange rate as 2016’s deficit

Chart showing Zambian kwacha's the exchange rate trend and Inflation
Chart showing Zambian kwacha’s the exchange rate trend and Inflation

The Economics Association of Zambia (EAZ) says unstable exchange rate and high inflation is what has been Zambia’s fiscal deficits in 2016.

EAZ president Chrispin Mphuka said it is these two factors his association has been expecting government would control.

Dr. Mphuka noted that if government controls this fiscal side of the economy what the Country is expected to see is the loosening up of the monetary policy.He said in turn what will come to the fore is reduced interest rates.

9 COMMENTS

  1. The first graph is misplaced. That is a copper price graph not the ZMK/US$ graph please. Save yourselves the shame and remove the article immediately. Why don’t you check your work guys. EAZ! copy and paste.

  2. There is no order in this Economic association grouping…No wonder every time they are on various platforms giving various opinions on the economy of the country with obsolete data…

  3. The article is incomplete and therefore makes no sense economically.

    It is meant to say that the government deficit is at the center of the current macroeconomic instability, reflected in the exchange rate and inflation. And that cutting the deficit would lower interest rates.

  4. Good to hear comments from EAZ regarding the current poor performance of our economy.

    We are however failing to understand how the two graphical representations of the exchange rate and inflation from 2008 to 2012 relate to the economic problems which seriously manifested themselves about two years ago.

  5. At least you must be able to understand that the first graph shows how the exchange rate of our currency performed in the period from 2009 to 2012, while the second shows the variation of the inflation rate over the same period.
    Now there is obviously a co-relation between exchange rate, inflation rate and the performance of the economy. So the doctor is merely using these two parameters to convince the powers that be to act to salvage the economy.

Comments are closed.

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