Zambia has received a 6.27 billion Kwacha ($277 million) dividend payment from its central bank, partly due to gains related to the depreciation of the local currency.
The payment in April will help boost the government’s finances and will be directed toward achieving the objectives of Zambia’s economic recovery program, the Finance Ministry said in reply to emailed questions.
It’s the biggest annual dividend yet received from the central bank, with 2.6 billion kwacha transferred last year, and 1.7 billion kwacha in 2019.
The Bank of Zambia by law pays the state its profits, which more than doubled to 6.9 billion kwacha last year, according to its annual report.
The biggest contributor to the income was increased realized foreign-exchange gains that resulted from the depreciation of the local currency.
That was even as foreign-exchange reserves fell from $1.4 billion at the end of 2019 to less than $1.2 billion by December.
The kwacha lost a third of its value against the dollar last year.
The payment comes at a good time for the government, which is in talks with the International Monetary Fund over an economic program and a concessional loan, and holds elections in August.
Zambia will probably only be able to finalize the IMF deal after the vote.
A program with the fund is crucial under the Group of 20’s so-called common framework for debt restructuring that Zambia has said it will use to rework its more than $12.7 billion in external debt.
GOVERNMENT HAS RECEIVED MANY DIVIDENDS RECENTLY
FROM ZESCO, NAPSA, ZRA, ZAMTEL, INFACT MOST ACCOUNTS VIRTUALLY DRAINED FROM ACCOUNT 99
Straight in the pocket of Edgar China Lungu!
“…dividend payment from its central bank, partly due to gains related to the depreciation of the local currency.”
Can someone explain this ….was the central bank betting against its own currency??
$277 million dividend from BOZ , but you default on the international loans,fail to pay retirees and fail to repay salary arrears.
Why not use the funds in their entirety to settle debt instalments? As we suspect, most of these funds will be used toward elections.
If Violent, Corrupt, Wasteful, incompetent and Visionless ECL steals his way back to Power no Bailout Package will come from IMF.Zambia will be declared bankrupt after defaulting on its Eurobond loans. No International Financial Institution has trust and Confidence in Corrupt Lungu. The writing is on the wall.
As Tarino says, someone needs to explain how a responsible central bank can claim to have done well after presiding over the biggest currency depreciation in years! The Kwacha fall wiped out wages and pensions for citizens and drove up poverty never seen in a long time and someone is smiling all the way to the bank!
Miraculously dividend has doubled. Yeah, sure, Edgar China Lungu HALVED the value of the Kwacha, so SUDDENLY the dividend increased! Only it didn’t!
I CERTAINLY CANT COMPETE WITH ANY OF THE ABOVE POST
ALL TO THE POINT AND WELL STATED
As someone above has stated, did we as a country bet against our own currency?
I also don’t understand how we can earn dividends after our kwacha depreciates.
Is this normal for the central bank to be proud that it has made money coz it sold dollars at high exchange rate when it’s supposed to lower the rate so goods are cheap for ordinary Zambians.
Where has this money gone to, we all know to pay for the every day inspection trips of Lungu and Wina.
Come August 12, no matter rigging or putting a Uganda at ECL the will of the people will prevail
Don’t ask the central bank. Ask your elected officials.
They are minting money for campaigns…nothing more. Dividend my arse.
Funny & Central Bank betting against it’s own currency to not perform well. And take a huge Short position in the forex market while doing nothing to improve the Kwacha to ensure their gains haha so riged. You can bet they’ll do this again those holding Kwacha are doomed and so is the 17 million Zambians who depend on the Kwacha for survival.
This windfall will be eaten by lungu and his minions towards elections and partially in thier pockets.
Better to pay off the coupon interest payments they have defaulted