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Alba Iulia
Thursday, August 26, 2021

Kwacha gains, significant-Financial Analysts

Economy Kwacha gains, significant-Financial Analysts

Financial analysts have described as significant the recent gains made by the Kwacha against other major convertible foreign currencies. The analysts say the appreciation of the Kwacha against international currencies is a positive development which cannot be downplayed.

In an interview with ZANIS in Lusaka, Blessings Kafwanka says the appreciation of the Kwacha could improve the standard of living for Zambians.

Mr Kafwanka has since called on the diversification of the economy as a long term solution to the depreciation of the local currency,

He also called on Zambia to focus its efforts on becoming a mass export based country.

“We should diversify our economy from being over dependent on copper. We also need to ensure that we improve on our export base especially when it comes to none traditional items,

Meanwhile in a separate interview, Mambo Hamaundu also believes Zambia should move away from becoming a country that focuses heavily on imports.

Mr Hamaundu says while the appreciation of the kwacha is significant, the country needs to export more in order to have a stable exchange rate.

He said it is very cardinal to have an exchange rate that is predictable and not volatile.

He believes Zambia’s economy needs to improve on its productivity which will in turn change the country into not being highly dependent on imports.

“The appreciation is sitting on events, we have bond auctions, we have people who are uncertain about what will happen post-election period, they are converting their currency into kwacha, it is not sustainable,” he said.

The Kwacha has appreciated against the United States dollar to K21.39 as at 23rd July 2021 from K22.64 on 1st July 1, 2021

The Ministry of Finance has indicated that the continued stability, and the recent appreciation of the Kwacha against the United States dollar largely reflects changes in the supply of foreign exchange and broad improvements in market expectations.

24 COMMENTS

  1. That small gain of just K1.25 against the USD is not significant .What is significant however is the depreciation from K5 when PF came to power and now its 21.39

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  2. We neither need a weak nor strong Kwacha, we want a stable Kwacha! It doesn’t matter whether the Kwacha is at K25 to a Dollar as long as it remains at the same rate for a long time. If the Kwacha can retain its position for a year or 2 you’ll see the gains. This sudden appreciation will put us out of business! Zambia is an import dependent economy. Those of us who bought goods when the Kwacha was at K23 will not compete with those that are remitting funds now, so we’re in losses. Can’t you get that in your heads!

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  3. Awe, we are seeing the gains because the international community think HH has already been sworn in. He did say that as soon as he is sworn in, the kwacha will rise. Maybe they think we have two governments in Zambia. This a first, kaili we are full of firsts in Zambia. I wonder what the doom and gloom mongers are feeling now.

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  4. Typical Africans…Kwacha gains from 1 usd to K5 and now it’s over K20 and the fake analysts start celebrating…Kwacha hasn’t gained anything…just wait when it starts its downward trend…soon it will be at K35 against the US$

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  5. We hope the BOZ is not off loading the scarce foreign reserves to prop up the Kwacha to show the people that the govt is working.

  6. I just read ZANIS and I knew they will only take the positives out this interview and downplay the negatives given that its BOZ and drunkard Mwunga that pumped in more that half a billion dollars 3 days ago and will flood the market in the next few days with another $1.4 billion nothing to do with exports.
    My advice to people is keep hold of your dollars and when it reaches K15 buy the dollars like no man’s business as this is artificial and come what may after the elections there will be huge bills to pay for Lazy Lungu’s recklessness.

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  7. A very strong kwacha is also not good enough for exporters so the drop has to be gradual otherwise we lose the gains we could have made in building up the base for exports. The exchange rate of about 15 is good in enough for all the players including debt servicing but that has to be managed gradually. We need to fix our sight on building the export oriented economy in order to become resilient even in times of severe challemges. You can’t trust the dollar that much as major economies like Russia and China are reducing dollar reserves in preference for yuan and commodities like gold.

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  8. Once the election is over , then by September the Kwacha will be back to 23 to 1. remember the kwacha is not floated, the BOZ decides its rate unlike the US, UK, Euro ect that are floated on the International market.

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  9. Even if the kwacha becomes K1 to a dollar we are still voting for change. It is too late to change our minds. Let them go to the villagers to buy them chibuku and chitenge materials

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  10. How does kwacha gain without any change in the fundamentals, I am sure the kwacha is cushioning itself against the cold weather. PF failure is just something else

    • Of course all this is stage managed kwacha appreciation, the currency has suffered all these five years only to come and appreciate now they are so tricky these fellas, they is no truth in them or their lives, and surprisingly on Sundays they are in some compromised churches, any way maybe that’s were they need to be

    • After elections, and miraculously the PF retains power, dollar may hit K50, because already observers and donors have started voicing out their concerns over lack of a level playing field in the campaigns, public media run by tax payers has been reserved for the misfiring ruling party, their party president is busy campaigning and pretending to be dishing out masks as if that is his job even

  11. ECL FOR ANOTHER 5 YEARS IS NOW A CERTAINTY.
    THE LIKES OF TARINO YELLOW JAUNDICED WILL GNASH THEIR TEETH TO THE GUMS.

  12. All the gains we had in MMD washed away, and they are busy saying they want to come back and rule. Even their President is campaigning and stopping others, very evil these people are, may God deliver them assuming they will realise and seek repentance

  13. @Night, I’m being sarcastic incase i’ve confused you. I know some people just like to go with the wind and think everyone suffers from amnesia.

  14. Yes the Kwacha appreciation is significant, because for the life of me it cannot be down to Edgar China Lungu: he doesn’t even know how to spell KWACHA!

  15. #13.2 @ Lumbanya
    Apparently there is no magic involved for the kwacha to gain significantly lately. There is price increase in copper that has increased the remittance at BOZ as well as BOZ intervention in the market now that they are slightly in better position in as far as reserves are concerned and coupled with the export of grain. But this continued sharp appreciation may be due to panic selling of dollars because the fundamentals to support strength of kwacha remain solid going forward including certain lMF bailout so people would rather offload the dollar now than be caught up with low exchange rate after elections. You must also understand that the elections result appear certain so that in itself has brought about investor confidence. My opinion.

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  16. Kwacha gains by a small margin just in anticipation of a upnd win now imagine when they actually win, the gains will be tremendous.

  17. You can only say kwacha has appreciated when it goes back to K6 where MMD left it, anything else other than that is the usual schemes by the outgoing party

  18. Who saw this coming? And my surprise is that even the analyst who were predicting a major slide are still analysing what is happening not against what they thought should be happening. Let some think tanks explain, advise whether its central bank financial tools or economic intervention or unusual externalities at play. Discuss!

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