The Economics Association of Zambia (EAZ) has advised some businesses in the country to stop quoting products and services in us dollars.
EAZ president Lubinda Haabazooka tells phoenix news in an interview that it is unfair for business houses to charge the Zambian consumers in dollars whose earnings are mostly in kwacha.
Dr., Haabazooka says businesses quoting products and services in us dollars are also making it difficult for Zambian based businesses and households to plan and budget effectively.
He has added that the kwacha remains legal tender in Zambia and only in some exceptional cases especially in the tourism is where charges in us dollars should be tolerated.
The ship has already left the harbor heading to Zimbabwe
The question fat Albert should be asking himself is why are they quoting in dollar
Locally trading in the US Dollar further weakens our currency, I bet this could be one of the reasons for the further downfall of the Kwacha. Let there be an SI from the responsible minister, or if there’s one already may it be reinforced- the sooner the better.
Dollarisation, also called currency substitution, is a common problem in all countries where the local currency is rapidly depreciating. It’s very difficult to control unless we control the cause in this case rapid depreciation of the kwacha. We can easily legislate against it but it will not work. Zimbabwe tried it. Wht followed was that prices started changing daily as the Zimbabwean currency was falling. It reached a ridiculous level where u could hv one price in the morning and another in the afternoon for the same product. So hw do we stop rapid depreciation of the kwacha? The answer is already known by decision makers. But they cannot pursue it because it conflicts with their other interests.
As an Economist you will know that the Kwacha is becoming cheaper than toilet paper so many will quote in dollars from now on.
The EAZ President is right. Such practices further weakens our currency. We urgently need an SI to curb the situation, or if there’s one already let our leaders reinforce it.
In the DRC you can trade either in DRC Franc or USD even in the streets yet some people insist that it’s a country in turmoil. They’ve more money than Zambia, Zimbabwe and Malawi combined. So Habazooka doesn’t know what he’s talking about. The problem is something else
As long as the kwacha continues depreciates against major currencies we shall see prices in dollars.
We heavily depend on imported goods and how would one recover losses due to exchanges rates?
We have reached a point of no return.
Edgar Lungu and PF have failed. Only Bally can fix the economy.
PF must go!
Great advice my fellow comrade. It was great to have had lunch with you and your very beautiful wife few weeks ago. This is timely advice and if people do not adhere, we will have no option but to swing into action. Only those unpatriotic mostly foreign entities are doing this. If you want to quote in dollars then move your business to America. This is Zambia
The US Dollar is the world’s reserve currency as such it is legal tender globally. Therefore, it is permissible to use it depending on the circumstances.
We as a country need to grow our production and exports and stop capital outflight from foreign contractors,mines etc
Fixing Zambia will require hard work and lots of support and trust of the international community. It requires politics of the kind that’s different from wht we hv seen so far which is one of constant campaigning. It requires separation of party from government. There’s no reason for party leaders to compete for visibility in the media with government ministers.
It should be illegal for citizens to trade in any currency but the currency of the country they live in. However, it is unfortunate that you cannot stop foreign capital from becoming more attractive/desirable than the local currency. What most Zambians don’t realize is that the dollar is an instrument of oppression and not development for our economy. It will enrich the already rich while the poor continue to suffer.
Why do they have the impunity to quote in dollars? Answer: weak leadership. They would not do such nonsense with Kaunda or Sata at the helm. These are no better than economic saboteurs
For us in the village, no effect. We don’t use cooking oil, only bath once a day applying no lotion, maize is still plenty and our chickens are still laying the same number of eggs. Our dogs are still chasing rabbits in similar way. We are sharing the same bicycle taking maize for grinding. We have samp for lunch without sugar like before. Finally our nets are still catching the same number of breams. Hahaha. Exchange rates are for the rich that buy imported items not fir us that chew would fruits daily. Joke please dont kill.
It’s a free for all in Zambia – anyone from abroad can set up business and quote prices in US$! There seems to be no trading standards authority to monitor and control how services are marketed, and in which currency.
Estate Agencies in Zambia are especially notorious for pegging property prices to the US$! Recently, I noticed properties in Zambia being quoted in Rands! This is baffling – are we in South Africa – does South Africa quote prices in ZMW for property in South Africa??? This is unacceptable, and government should clamp down on it.
In fact, when you do consider, more often than not, the price comparison doesn’t even match up to what you could get for your US$million if spent in the USA. With the exception of HH’s house on Sable Road – which is proportional in…
Its obvious. Suppliers want to be paid in dollars not in kwacha thats why they quote in dollars. Doesn’t take an economist to realize this.
Continued….
In fact, when you do consider, more often than not, the price comparison doesn’t even match up to what you could get for your US$million if spent in the USA. With the exception of HH’s house on Sable Road – which is proportional in design, and a delight to look at, most properties in Zambia are pretty badly designed – just chunks of shapeless pile of bricks you couldn’t compare to properties in the USA. Importantly, most Zambians cannot afford the astronomical US$ pegged asking prices.
So, one wonders who will buy these properties…NGOs from abroad? No wonder many properties in Zambia remain listed on Estate Agent’s books for years. They are ‘over priced’ disproportionately for the local market.
Bally is the part of the problem. MMD privatized, Sata was a part of MMD and privatisation, so was Lungu and HH.
Anybody who was associated with MMD shall be rejected.
Let there be a fresh face from copperbelt university, UNZA or a doctor, nurse.
Tell fat Albert to discuss economics with his level Kennedy Kaamba who wants party cadres to replace directors at BoZ.
Surprisingly President Lungu said he has taken charge of the economy, and Kamba immediately follows with his statement on the economy. Is he now the de facto minister of finance? Or is it just indiscipline in PF?
How about you issue a statement on BOZ shenanigans mister
This line is not necessary:”EAZ president Lubinda Haabazooka tells phoenix news in an interview that it is unfair for business houses to charge the Zambian consumers in dollars whose earnings are mostly in kwacha.” Space waster.
This is what is a bit ok: “He has added that the kwacha remains legal tender in Zambia and only in some exceptional cases especially in the tourism is where charges in us dollars should be tolerated.” But to say “remains legal tender…blablabla”is also not correct because it is legal tender in Zambia.
Disaster!!!
In the 80s our parents lost all the money they were saving because the Kwacha went mad diving every few months. It was n’t safe to save your Kwacha so only those with dollars retained their money
In the 80s our parents lost all the money they were saving because the Kwacha went mad diving every few months. It was n’t safe to save your Kwacha so only those with dollars retained their money. It s happening again that’s why people are switching to dollars. They are trying to avoid the 1980s experience