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Alba Iulia
Thursday, September 24, 2020

Bank of Zambia says Major foreign currencies continue to pressurize Kwacha

Economy Bank of Zambia says Major foreign currencies continue to pressurize Kwacha

The Bank of Zambia says the Kwacha in the recent past weeks has come under pressure from major foreign currencies owing to low imports by the mining sector and COVID – 19 which has impacted global trade.

Bank of Zambia Acting Assistant Director Communication Bersnart Mwanza says the Kwacha depreciated by 8.0% to k19.81 per us dollar from k18.34 largely reflecting imbalances in the foreign exchange market.

In a statement sent to media yesteray, Ms Mwanza stated that the lower foreign exchange sales had been noted from the Mining sector as well as foreign financial firms who typically invest in Government securities.

Ms Mwanza explained that the reduced mining sector supply although pronounced in this period was consistent with the gradual reduction in exports in general.

She further explained that this was due to disruptions to international trade and the declining global growth due to the outbreak of Covid-19 pandemic.

She added that the operational challenges were at key mining firms who have been significant suppliers of foreign exchange in the past and have now compounded the situation.

“There has been significant increase in foreign exchange for the importation of agricultural inputs, health related supplies required to address the Covid-19 pandemic and the clearing of debts to suppliers.” She said.

Meanwhile Ms Mwanza stated that companies in June this year started paying all their statutory tax obligation in addition to the royalty mineral tax to the Zambia Revenue Authority (ZRA) through the central bank.

Ms Mwanza said in August and September the central bank has been able to provide foreign exchange liquidity back into the market to help meet the current significant increase in demand amidst reduced supply.

“In previous Monetary Policy Committee (MPC) statements, the exchange rate has had an important inflation outcomes, the volatility in exchange rate, while allowing it to adjust to market conditions, which is a critical ingredient in achieving and maintaining price and financial system stability,” Ms Mwanza lamented.

This is contained in a statement sent to ZANIS by Bank of Zambia Acting Assistant Communications Manager Bersnart Mwanza.

34 COMMENTS

  1. Kkkkk naikosa ba PF.
    Every one at Bar of Zambia is “acting”. When is Chris graduating from kumukanda so can be installed at Paramount Governor?

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  2. In the absence of a Covid loan from IMF the Kwacha will sharply depreciate against the USD. Should the New Governor of BOZ resort to reckless printing of money the Kwacha could be 1:30 by the end of the year. Life is about choices.

  3. Ba Lungu Made a mistake to appoint that bank governor call Kalyalya. He has managed to decampaign him through mismanagement of kwacha. It’s too late ba Lungu.How can you allow the currency to depreciate from 6-20 within 6 years of your rule?Bank of Zambia is full of employees with fake PHD and Masters.They just get money for free.What nonsense is this.Where were you when kwacha was losing value?We may love this president but he has allowed people in civil service to destroy the economy.He is cracking the weep when it’s too late.If he doesnt manage the kwacha the 2021 he is going.He should bring the Kwacha down.Why can’t he fire these BOZ chaps and replace them with people who can think?This is so annoying.Things are expensive now.How could allow HH’s man to manage BOZ in your righ…

  4. Ba Lungu Made a mistake to appoint that bank governor call Kalyalya. He has managed to decampaign him through mismanagement of kwacha. It’s too late ba Kateka.How can you allow the currency to depreciate from 6-20 within 6 years of your rule?Bank of Zambia is full of employees with fake PHD and Masters.They just get money for free.What non—-sense is this.Where were you when kwacha was losing value?We may love this president but he has allowed people in civil service to destroy the economy.He is cracking the weep when it’s too late.If he doesnt manage the kwacha the 2021 he is going.He should bring the Kwacha down.Why can’t he fire these BOZ chaps and replace them with people who can think?This is so annoying.Things are expensive now.How could allow HH’s man to manage BOZ in your…

  5. Ba Lungu Made a mistake to appoint that bank governor call Kalyalya. He has managed to decampaign him through mismanagement of kwacha. It’s too late ba Lungu.How can you allow the currency to depreciate from 6-20 within 6 years of your rule?Bank of Zambia is full of employees with fake PHD and Masters.They just get money for free.What nonsense is this.Where were you when kwacha was losing value?We may love this president but he has allowed people in civil service to destroy the economy.He is cracking the weep when it’s too late.If he doesnt manage the kwacha the 2021 he is going.He should bring the Kwacha down.Why can’t he fire these BOZ chaps and replace them with people who can think?This is so annoying.Things are expensive now.How could allow UPND man to manage BOZ in your righ…

  6. Ba Lungu Made a mistake to appoint that bank governor call Kalyalya. He has managed to decampaign him through mismanagement of kwacha. It’s too late ba Lungu.How can you allow the currency to depreciate from 6-20 within 6 years of your rule?Bank of Zambia is full of employees with fake PHD and Masters.They just get money for free.

  7. READ The JP Morgan Global FX Volatility Index and understanding trades behind the dollar and Major Influences on the US Dollar Right Now One of the biggest influences on the US dollar right now is a change in US Federal Reserve monetary policy.Another major influence affecting the US dollar is the extreme positioning in the EURUSD currency pai

  8. Can the president just tell these chaps that i don’t want to see kwacha goes beyond K19 per dolla.GThis president has made himself lose election coz of failure to manange kwacha.He was sleeping when Kalyalya played ka note.

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  9. All eyes on the Fed
    The US central bank is expected to keep interest rates unchanged at record lows and reiterate tolerance for high inflation. The markets have already factored the odds of rates remaining low for a prolonged period. The Fed funds futures show implied rates pinned down near zero well into 2023, according to Reuters.

    As such, the focus would be on the Fed’s growth and inflation forecasts. If the Fed raises the growth outlook, the greenback would pick up a bid, sending EUR/USD

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  10. Covid impact on global trade has been catastrophic. When I talk to my counterparts in foreign countries even in the western economies I am told of how bad it is and how jobs are being lost every day. However this is something the upnd diasporans would not be aware of because these f00ls don’t have jobs there abroad. They leech off state welfare benefits and shlt out many kids and then wonder when the real owners of those countries tell them to go back where they came from. Even us we don’t want them here

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  11. Look at Zambia, as opposed to the neighbouring countries, we have been doing quite well, Rwanda and South Africa have taken a hit and Malawi is in deep trouble

  12. In times of such global slowdown, all we can do is maintain good trade relations with our international partners and unite to take the country out of the crisis and build the nation

  13. The global pandemic of COVID-19 has destroyed the economies of even the developed countries such as those of USA and Japan but as opposed to them, we have shown quite a recovery

  14. There is nothing to celebrate on this, I saw many taking this as a mandate on President Edgar C Lungu’s policies and his vision for the country and blatantly politicising the matter but use some sense and see it as it is, a global slowdown due to COVID-19

  15. This is not the case only in Zambia, like COVID-19 can happen to any country, the slowdown can ravage any economy but the important point is how you tackle it and I can say with full confidence that our country is in he safest hands under President Edgar Chagwa Lungu

  16. Is Ms Mwanza working for someone else to ruin Zambia’s international image or should she do what she should, build the economy, strengthen the economic health of the country and bring us all to development and growth

  17. Edgar Lungu is not a leader, he just chanced to be found on that seat due to his meekness.

    That’s PF for you! The kwacha heading to 30 kwacha per dollar.

    Rich people have shifted their savings and deposited them in stable currencies and countries.

    Just use a visa or master card to transact.

    PF must go!

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  18. It should be business as usual because the COVID19 RECOVERIES FOR THOSE ECONOMIES IS exhibiting K shaped other economies like ZAMBIA in frontier and emerging will severely be impacted that is why address on macroeconomic environment by HE Edgar LUNGU WAS well pressed but it could be better as said with innovations and resilience but also we need to harden our exposure assuming 2 waves of global covid in 2021

  19. Corruption and wasteful travel, working trips by Lungi and his entourage of PF thugs will push K to 22 to one US dollar by Christmas.
    Merry Christmas for exporters,

  20. Corruption and wasteful travel, working trips by Lungu and his entourage of PF thugs will push K to 22 to one US dollar by Christmas.
    Merry Christmas for exporters,

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