Economics Association of Zambia President Lubinda Habazoka has attributed the recent sharp depreciation of the Kwacha to the venting from some diplomats.
Dr Habaazoka said the statement issued by some Diplomats serving in Zambia has helped create anxiety in the economy leading to the Kwacha weakening.
He said this has been coupled with mines withholding Foreign Direct Investment and production which has hampered the Kwacha.
“I understand that the main contributors to a weak kwacha now is debt service and demand for forex as we enter into the festive season but speculation and irrational factors are also contributing factors,” Dr Habazoka said.
“When you have BOZ maintaining reserves at around $1.5bn for over a year now, the market should adjust and understand that there is no risk. However, venting from some diplomats coupled with mines withholding FDI and production have also contributed to the anxiety,” he observed.
Dr Habazoka charged that Zambia has over $2bn outside the banking sector at the moment hence the resilience witnessed so far.
“In terms of liquidity, there is over K5bn that is outside the banking system in the black economy that is why the wheels of the economy have surprised the IMF who unofficially thought we would be gone by July 2019.”
The EAZ President predicted that in the coming few months especially towards the elections, Zambia shall see reports on the economy which will send people to the grave.
“As citizens, we should be very careful to separate substance from regime change plots that unfortunately affect everyone regardless of political affiliations. This is high time we enhanced citizen participation in the major suppliers of forex. If we had control over mining, just an order from Hon Bwalya Ng’andu to increase mine output could have boosted our reserves.”
He added, “Let’s learn from Chile, Saudi Arabia, Emirates, Russia, Kuwait, Iran and China! We can’t be careless with our resources like that. A law defining economic sabotage can be considered from unjustifiable scaling down of mine output even copper prices make sense can be introduced in extreme cases.”