The Ministry of Finance has indicated that the continued stability, and the recent appreciation of the Kwacha against the United States dollar to K21.39 as at 23rd July 2021 from K22.64 on 1st July 1, 2021, largely reflects changes in the supply of foreign exchange and broad improvements in market expectations.
The Ministry has further stated that the new developments are consistent with the broad goals set out in the Economic Recovery Programme (ERP), which was launched by President Edgar Lungu in December 2020.
According to a Statement issued to the media last evening by the Ministry of Finance Public Relations Officer, Chileshe Kandeta, the recent developments in the foreign exchange market include factors such as improved foreign exchange flows from the mining sector in view of the strong recovery in copper prices and production.
Mr Kandeta added that this has led to a significant expansion in the trade balance estimated at US$1.9 billion during the period January to May 2021 compared to US$576.8 million over the same period in 2020.
He added that other factors are significant flows from non-resident investors seeking to purchase government securities, evidenced by the oversubscription at 116 percent in the bond issuance held today.
“This has bolstered liquidity in the foreign exchange market and has subsequently led to the substantial reduction in the hitherto excess demand,” he said.
Mr Kandeta also stated that scaled up market support by the Bank of Zambia in view of improved flows from the mining sector is equally another factor.
“Further, there has been a confidence boost in the market following the announcement by the IMF to allocate Special Drawing Rights (SDRs) to its members in August. The SDR allocation is expected to increase international reserves by approximately US$1.3 billion in August,” He stressed.
Mr Kandeta said in addition, the Bank of Zambia has continued with the gold purchase programme through which about US$22 million has been added to the international reserve position.
“With the above developments and continued implementation of the measures in the ERP, the Kwacha is likely to remain resilient,” he said.
BOZ MANIPULATION THATS IT
Increase international reserves by USD 1.3 billion? How? These mappets we have placed at BOZ are dullards with myopic synergies which are misdirected and dysfunctional. The appreciation of the Kwacha is simply because the mines have paid their dues being July, and this appreciation is only temporally and is nothing worth boasting about. The PF has failed to bolster the industrial base which is the bedrock of economic expansion that can lead to proper appreciation of the kwacha and not these cosmetic antics which are diametrically opposed to proper economic management.
Really laughable….Kwacha appreciates by K1.25 and they start singing praises for Lazy Lungu but when it depreciates they blame global market.
“The appreciation of the Zambian kwacha is due to improved dollar supply and the positive outlook in terms of forex reserves. Mining activities have increased resulting in increased forex inflows,” EAZ president Haabazoka has explained.
These people have no shame even Ministry of Finance civil servants Public Relations Officer, Chileshe Kandeta who used to professional are now singing praises for Lazy Lungu…imagine 5 more years of Lungu.
A selfie hahaha he looks like behind of a donkey!
Off loading stolen and borrowed $s by the plane load from dubai………
Upnd diasporans are now angry because it means their imperial whlte masters currencies are now less valued to the kwacha. These sellout would rather have the kwacha depreciate than appreciate. For me my businesses are now doing even better thank to kwacha going up. You upnd motherfcukers go to hell
Hey KZ the UK based troll and imposter, so it wasn’t your former boss who was responsible for the depreciation from K4.5 to K23 in the last 5 years??? It’s just as well the Zambian voters have got a better memory in their finger nail than you got in your entire ugly body: August 12 and it will all be OVER! Kikikiki……
And the only ones going to hell will be the PF leadership, who will in 18 days the FORMER leadership, when they knock on the Pearly Gates: the Lord will remind you of the ten commandments which you have trespassed all those years, and direct you to that little hole in the floor called HELL!
You should try your best not to take ANYTHING trolls say seriously. NO matter how POORLY they behave, remember these people spend countless UNPRODUCTIVE hours trying to make people mad. They’re not WORTH your time of day.
The hint is in the forward rate of the USD to the Kwacha over this fiscal planning periods It should be expected that the Kwacha will continue appreciating to its long run mean value Then people need to understand in economics there no absolute parity in prices That is kwacha 1 to 1 with the USD dollar Similarly there could no be absolute parity in the Prices of goods But parity itself and in this case the Price of 1 currency to the other is important as a measure of comparative advantage and performance of the economy
Addressing core inflation will be critical to further see the kwacha move down to its acceptable levels in the long run
Forecast on core inflation to establish a “sizeable floor system of reserves, stabilizing the growth of total government spending especially on Investments and moderate well the nominal gross domestic product NGDP or income to allow effective market forces that will price the kwacha and its price of good efficiently Then the kwacha as expected is poised to perform better
Growth in the economic sectors is what will transform the economy and the kwacha in the long-term
kwacha lost value from K13 to K23 within a shortest period of time making alot of people in poverty. can i k1 apprecition be something to talk about?? awe kwena we are a poor country.
Just a smoke screen ,
Never in an African or 3rd world country does the currency appreciate just before Highly contested elections……..
Prospects of HH coming to power helping the kwacha. A powerful sentiment
That’s a very negligible appreciation infact we can say the Kwacha/Dollar rate has remained flat.
When the kwacha depreciates, they mock and laugh their lungs out because it suits their narrative that PF government is mismanaging the economy. When the kwacha appreciates, the same people downplay the improvement in the exchange rate, saying it’s nothing to sing home about. They take videos of isolated damaged roads in some remote parts of the country and shout, “Look at this! Ati ba PF are working. Is this working?” while conveniently ignoring to mention the massive road infrastructure one sees all over the country. Honestly, if this is what the opposition is all about – criticising even the good work the government of the day is doing – then I don’t know what opposition means.
I thought this guy was fired by PF for pre-ejaculation of information in the national budget?
At the PF virtual rally last week, the PF said appreciation of the kwacha as promised by HH would be bad because those with dollars are going to lose money
So in your wisdom the appreciation has nothing to do with Govt intervention in the economy? What has led to increased copper production resulting in more taxes being remitted in BOZ? You think if Mopani remained on care and maintenance it would have resulted in increased production and tax remittance ? You think if there was no bumper harvest that has resulted in the export of excess maize hence increased forex in the country would have resulted in appreciation of kwacha? You think if there was no investor confidence in the economy , there was going to be oversubscription for Govt securities leading to increased flow of forex? This appreciation may appear insignificant but its a solid indication of where the country is heading regarding building a strong export base and returning the…
the country to debt sustainable levels. The other thing worth noting is that some infrastrture projects have now been completed and will supplement in bringing in of more forex. I have in mind Kasungula bridge and kafue hydro. Let us also not forget that Mopani with increased working capital injection will increase production and take advantage of good prices. We just hope to conclude with the legal entanglement with Vendetta over KCM in earnest. With the cultivation of marijuana under the defence forces now law, l see no reason why the country won’t go into robust growth and put the debt issue out of debate. Alebwelelapo pamupando!
Once Covid is off the way or when vaccination program guarantees safety of tourists, the sector will return to earning forex further boosting the forex in circulation. ECL knows this is his last term so he has a legacy to leave and less politics to do so will focus on development and this will further build confidence in the economy. We’re certainly safer with PF and ECL.
The truth is that the Kwacha has appreciated
Chileshe Kandeta…my point again, every f@cking office…Mulenga, Chileshe, Bwalya, Chitalu Chilufya, Chanda, Chama….and then somehow they have the nerve to call any opposed to pf as tribal?
Arrrr…but we thought the appreciation of the Kwacha can only happen on the swearing in of HH? manje why boza so? Anyway we can drive forward even in reverse gear.