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Tuesday, July 7, 2020

Government refutes reports of introducing exchange controls to arrest the Kwacha slide

Headlines Government refutes reports of introducing exchange controls to arrest the Kwacha slide

Minister of Finance Margaret Mwanakatwe
Minister of Finance Margaret Mwanakatwe

Government has said that it has received reports that some unscrupulous persons are taking advantage of recent challenges in the local foreign exchange market to spread false information implying that exchange controls are about to be re-introduced in Zambia and that foreign currency accounts held in our banking system will be converted into Kwacha.

In a statement released to the media, the Minister of Finance Mrs Margaret D. Mwanakatwe said that these insinuations don not represent the longstanding policy of the Government of the Republic of Zambia and she assured local and foreign investors, businesses, and the general public that not introduce foreign exchange controls

Below is the full statement


LUSAKA, 20th MAY, 2019

The Government has received reports that some unscrupulous persons are taking advantage of recent challenges in the local foreign exchange market to spread false information implying that exchange controls are about to be re-introduced in Zambia and that foreign currency accounts held in our banking system will be converted into Kwacha.

I want to state that these insinuations DO NOT REPRESENT the longstanding policy of the Government of the Republic of Zambia. In addition, I wish to assure both local and foreign investors, businesses, and the general public and categorically state that *THE GOVERNMENT IS NOT ABOUT TO AND WILL NOT RE-INTRODUCE EXCHANGE CONTROLS.* To the contrary, the Government remains committed to maintaining the current flexible exchange rate regime.

Looking back to the 1980s and 1990s, the nation will recall the painful experience that Zambia endured due to exchange controls after which we resolved as a country to do away with exchange controls as they did not resolve the underlying challenges faced by the economy then, but made things worse.

Diversification of the economy, particularly the export sector, is one way of strengthening our domestic and external sector performance, sustainably. In this regard, the Government, through the revised 7thNational Development Plan and the Economic Stabilisation and Growth Programme, has developed a robust framework aimed at addressing the challenges faced by the economy and meeting the aspirations of our people. As Government, we are committed to implementing these programmes and the current challenges the economy faces make this task even more compelling.

Further, it is also important to note that the Bank of Zambia manages the Government’s exchange rate policy in the context of its overall objective of maintaining price and financial system stability. The Bank of Zambia will hold its quarterly monetary policy meeting this week and will be having a media briefing on Wednesday May 22, 2019. A detailed assessment of recent developments in the foreign exchange market as well as monetary policy developments will then be provided to members of the public at that time.

I take this opportunity to appeal to my fellow citizens and friends of Zambia to be on high alert and help curb mis-information. The practice harms the less privileged due to the propensity of falsehoods to impair the social-economic progress of the country.

Issued by:

Margaret D. Mwanakatwe, MP, MCC

[Read 6,439 times, 1 reads today]


    • Just look at her mouth….this woman is a total jerk…..she needs to be fired am surprised she’s still a minister…..

    • She is awake, welcome back.

      Let us ask why the Dollar reserves have fallen to these levels.

      Who has been printing excess Kwacha to buy up US Dollars?

      There is no point closing the gate after the horse has bolted.

      The problems this government has put us in are not problems this government can resolve.

  1. Mutati built the image of PF now its back to donchi kubeba PF. Was it a dununa livesi part of move

    • Mutati should never have been appointed in the first place….that’s like appointing GBM as Defence Minister again you can not just trust the man. Furthermore, Mutati is an accountant like Auntie Maggie Dizzy…

  2. That’s because you and your fellow drunks have failed to come up with any solutions. When you don’t take ownership of your failings people will fill that void with speculation which further hurts the economy. Every economist knows that is a basic principle. However you are not an economist you are a drunk freakshow

  3. PF is a corrupt entity of dander heads …..

    even in the importation of cars into Zambia from say the U.K. this is how they are disadvantaging Zambians

    All cars on roads in the The U.K need an MOT cert , which is a comprehensive safety and pollution check.
    Now Soko and RATSA have single sourced a company JAVIC to carry out checks, costing £150 , checks to check on the same MOT Zambians paid £50 for to begin with.

    Paying that extra £150 to check the MOT certificate means I have £150 less to send to Zambia ….

    • Not sure if Soko is eating from that JAVIC or this is just plain being du.ll and being seen to be doing something …

      You are hammering people in diaspora who can be a source of money to the tune of £100 million pa

    • Regarding the £150 JAVIC check to check the MOT certificate, why not just insist on an MOT certificate not less than 3 months. MOTs last 1 year and are a very thorough check on the road worthiness of the car.

      That way I can still have £150 to send in Zambia or send extra £150 for my projects back in Zambia

      But lungu and his dullards don’t think like that

  4. Taking money out of Zambia is very easy.

    Zambia is the only country where u can exchange money in the street,

    only country where u can withdraw millions at the counter without making bank notice,

    only country where u can send money anywhere in the world with no restrictions

    Therefore, Zambian financial institutions are doomed.

    The financial institutions of Zambia should learn some good policies that South Africa has when it comes to money.

  5. See now where unscrupulous borrowing has landed this country?
    The Depreciation of the Kwacha means our USD debt is becoming more expensive to meet. This increases our default risk. What this means is less money for public services and more new taxes as far as PF thinking is concerned.
    A prudent boma should be thinking of structural adjustments – cut GRZ spending, but that’s when you hear they want Deputy Monsters back! What a Dizzy Economy we have!

  6. Clueless useless drunk, just go discuss whiskey with your drunk boss or might I say debarred thieving moron. Both of you are useless and dull, that why we find ourselves in this predicament in the first place…. Chipante pante Kaponya govt

  7. We have people who are not patriotic in this country. It’s a only country in the world where foreigners take control of resources.Bank of Zambia is use-less with bank governer maybe he is UPND. Immigration also is use–less allowing foreigners with fake qualifications to be CFOs in companies as a result there is no royalty for Zambia.We have seen what’s happening these chaps are destroying the country.Strategic positions need to be given to Zambians.Instituitions likes ZRA,immigration,BOZ n Police are failling this country.We don’t need corrupt chaps to be in charge of these institutions.The future is gone for our children.Can we come together as Zambians please n stop ba mwisa.

  8. Was this statement issued in a serious and sober state on behalf of Government or may change when the Minister is sober and consults……?

  9. Remember a few months ago? New notes appeared in the market..explanation was that they were printed to replace damaged currency. That’s the effect now. Chickens have come to roost.

  10. MM should be sacked Mr. President if you are reading this. Whatever your view is, she is a discredit to the Presidency and the sovereign nation of Zambia.

  11. Everyday is talk talk, you are not answerable to anyone every second. Do the job and maybe inform us later.

  12. Just transfer Maggie to ministry of liquor
    And dizzy.Dont fire her she has a family
    To look after.



  14. Where are the women’s Groups that went to town praising the appointment of this woman? If this were a man would you be so quiet? Or are you happy with the work she is doing and her conduct??? Anyway, as you rightly say “what a man can do I can do it even better”. There you are, we are learning.


  16. Why always been reactive with no solution?? for what have been still happening in the country. Is the economic model that you have been following is the problem or the problem is you at the place. why this much economic instability ,why this much currency depreciation. I think You should re-assess your policies and take structural changes instead before getting dark!

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