9.5 C
Alba Iulia
Friday, August 27, 2021

Kwacha appreciation elates PMRC

Economy Kwacha appreciation elates PMRC

Executive Director Bernadette Zulu
Executive Director Bernadette Zulu

The Policy Monitoring and Research Centre (PMRC) is elated with the continued appreciation of the Kwacha against the United States dollar.

PMRC Executive Director Bernadette Zulu said over the past week, the country has witnessed the appreciation of the Kwacha, the highest in its history at a rate of 5.6 percent from K22.69 on July 12 to K21.41 on July 23, 2021.

Mrs. Zulu said despite the negative impact of the pandemic, notable shifts in the market have triggered the appreciation of the Zambian Kwacha.

“According to the Bank of America, it is anticipated that copper prices could reach as high as US$20,000 per metric ton by 2025 amid the widening supply and demand deficits due to the United States led global economic rebound that would boost demand for metals used in manufacturing and construction industries,” she stated.

Mrs. Zulu explained that the foreign earnings from copper exports are a critical factor that will strengthen the local currency as the global economy continues to recover from the pandemic.

She further said copper will play a big role in the post Covid-19 recovery since countries are looking to permanently shift from fuel combustion powered vehicles to electric powered automobiles meant to reduce global carbon emissions.

Mrs. Zulu explained that at the height of the Covid-19 pandemic in 2020, global economies experienced instability due to reduced trade and restricted movements.

“In the same year, the global economy was projected to contract by 4.9 percent while Zambia’s economy projected a 4.2 percent contraction owing to the pandemic, climate change as well as the volatility in copper prices, which greatly weakened the Zambian Kwacha,” she said.

She said as of December 2019, the Zambian Kwacha was trading at K14.05 before it depreciated to trade at K22.69 against the United States Dollar as of 12th July 2021.

She added that the government’s recent acquisition of Mopani Copper Mines places Zambia in a position to benefit from the higher copper prices on the global market, a situation she said is another notable factor for improved trade volumes.

She added that the appreciation of the Kwacha is further attributed to the improvements in supply associated with the forthcoming International Monetary Fund (IMF) Special Drawing Rights (SDR) allocation.

Mrs Zulu further noted that improved prospects of a formal Extended Credit Facility (ECF) programme with the IMF has attracted growth in the demand for government securities and bonds.

The PMRC Executive Director hoped that the current appreciation of the Kwacha will lead to the reduction in the cost of doing business and consequently a decline in the prices of major commodities.

“The gains in the Zambian Kwacha must be sustained by more investment in the backward and forward linkages in the agricultural sector through the investment in agro-processing, research and development as well as enhanced extension services in the sector as a viable earner of FOREX and driver of the economy,” Mrs. Zulu explained.

“The demand and supply factors that have led to the appreciation of the Zambian Kwacha are as a result of the government’s efforts in achieving macro-economic stability through current account sustainability as enshrined in the Economic Recovery Programme (ERP 2020-2023),” she said.

29 COMMENTS

  1. That is excellent my Country. That is were to go. Mr Kaizer Zulu said it that we should be patient with that.

    7
    8
  2. This is what we tell UPND chaps.Zambia is working.Lungu got those mines and we see the results.copperbelt please listern never vote for this loser .PF has brought our mines he sold.He made money through privatization.Kwacha is going to be a strong curreny.If you have dolla better you change now otgherwise ma losses in few days to come

    8
    10
  3. UPND mwaimfwa ba kalusa.Getting mines from these infectors was a good sign by ECL.Simple but tough mu action.Vote PF

    8
    10
  4. Even though it looked like a beauty contest between Brazil vs Zambia.
    Zambia women just lost 1-0 to Brazil. Brazil had all superstars, Martha, Formiga all played.
    But what we see is these ba kwacha rubbish, ba swaiini.

    4
    5
  5. How dull can someone be….ati ” at the history of the kwacha”… Stage managed and serious sort time currency maniputaion…..it’s not even rocket science to know that this is how elections will be rigged..Lungu is a Bandit

    9
    1
  6. I like Edgar Lungu’s foresight and strategic plans. He did foresee the copper price booming as we go by. He grabbed the mines on behalf of Zambians.
    He has invested in electricity generation knowing that to run the mines we will need more power….Clever guy.
    He has built clinics and hospitals knowing that the country the nurses and doctors we have trained will need to be absorbed in to provide quality health care for our people. Zambia is no longer short of doctors, Nurses .
    Edgar has built a lot of schools knowing that soon we shall to take on the thousands of teachers we have trained.
    He has improved roads in the rural parts of Zambia….to ensure drugs get to the rural clinics, to ensure fertilisers get to our peasant farmers.
    This guy has worked……Give him the…

    6
    11
  7. These people have got remarkably short memories! They get an 0rgasm when the Kwacha appreciates with 50 Ngwee, while it depreciated by more than 15 Kwacha over the last six years! Didn’t hear you then! How much “empowerment” did that corrupt Edgar China Lungu give to you???

    8
    3
  8. To flood the market with borrowed dollars and the rejoice at the “strengthening” of the kwacha is just [email protected] and myopic—but no less than one would expect from this clueless, visionless pf and their surrogates.

    8
    3
  9. These are bootlickers (or even more than that) the young girl needs to clap because she will not those pointless seminars in Siavonga …she doesnt even understand how the currency even appreciated

    9
    2
  10. And just like Bandit President Edgar Lungu will win rig elections and claim that people voted for him because of the US$….this is his game plan….Kwacha appreciating 2 weeks before elections…come on now

    10
    1
  11. That’s my good friend. We need to catch up over lunch once elections are over my beautiful friend. Right now my work on the ground comes first. Thank you zesco for restoring electricity

    3
    13
  12. So in your wisdom the factors that made the Kwacha appreciate 2 weeks before elections should have waited until after elections? So if they have relatively sufficient reserves now to cushion the impact of the high exchange rate they should not make use of them for fear of being accused of manipulation? Who wouldn’t take advantage of that anyway if that’s what they did and help them boost the chances of winning? All I’m intetested in is that the fundamentals point to Kwacha strengthening going forward.

    2
    12
  13. Even a 10 year old knows that this appreciation of the Kwacha is election related, so get elated for what

    9
    2
  14. ‘She added that the government’s recent acquisition of Mopani Copper Mines…’
    Madam, did you read the terms and conditions?

    8
    1
  15. Only an ***** will accept ati Zambian kwacha is appreciating as a result of economic performance and normal business activity of the country. Its all hogwash. Its so clear that ni manipulation by the central bank with directives from State House.
    Loleni after 12 August…mukamona the depreciation…a few months real fuel price will be revealed.

    PF has managed to throw the sink in its attempt to win my vote. Mubepelefye ba nkusa I will not vote for you. Nix.

    6
    1
  16. Even my friends who are vocal work at Ministry of Finance didnt want to discuss the appreciation of the Kwacha in WhatsApp Groups…really laughable…its only these empty tins like this little girl with fake MBA papers from Cavandish University!!

  17. Even my friends who are vocal work at Ministry of Finance didnt want to discuss the appreciation of the Kwacha in WhatsApp Groups…really laughable…its only these empty tins like this little girl with fa ke MBA papers from Cavandish University!!

    5
    1
  18. Ladies and gentlemen…the elections have already been rigged…this stage managed Kwacha blah blah is just one way to lie to Zambians just like we do it here in the USA…any event just before the elections calling it a game changer..like people suddenly want to vote for Bandit President Edward Chagwa Lungu…wake up Zambians…this is broad day light robbery…don’t be fooled….in a genuine economy like the USA…we don’t see such gains even on the DOW JONES market

  19. This is what happens when you follow the development of the economy on social media even your analysis is reactive and lacks merit. After August 12 as we hopefully anticipate a PF win l urge your to broaden the spectrum of information gathering to include Govt sources so that you’re properly informed otherwise you will remain a pillar of salt.

  20. I dont see any economical fundamentals that has changed in order for kwacha to appreciate this with a short possible time. I can only see the hand of abene bachisushi toying around with the dollar during this company period. This is was expected and this was the reason why Danny Kalyalya was removed BOZ and replace with a typical carder who can accept to manipulate the dollar rate by pumping more dollars in the market. Only fikopa can celebrate this! ##Chisushi chanunka pipp

  21. kolwe kolwe – Its the same fikopas who were celebrating when PF govt was borrowing at an unsustainable rate …just look in the LT archives the same culprits .. this small little girl was among them, she can not even manage her on personal finance!!

    3
    1
  22. It’s interesting how the smart keep losing elections and the ifikopo keep winning l mean if you can’t figure out the system to win simple majority rule and the chief chikopo ECL beat you at his weakest in 2015 and likely this year when so much has been against him then its better to belong to the ifikopo category.

    2
    1
  23. Let me refresh your memories just in case you decide to look at these events with a flexible mindset. Somewhere about 2004 l can’t remember exactly when the Zambian economy was at its lowest, and l remember Barclays closing most of its branches, soon after out of nowhere by the boom in the copper prices that made the Zambian currency appreciate from the range of 9000 then to 3200. Barclays had to quickly come back and setup branches hurriedly in townships like Chilenje and matero and gave out unsecured loans to woo clients back. This is the cycle that is repeating itself this time it has come in an election year and according to prediction its bigger than the last cycle. As a Christian l call it favoured in season because that’s how God operates. How do you explain Glencore who should…

  24. Let me refresh your memories just in case you decide to look at these events with a flexible mindset. Somewhere about 2004 l can’t remember exactly when the Zambian economy was at its lowest, and l remember Barclays closing most of its branches, soon after out of nowhere there was a boom in the copper prices that made the Zambian currency appreciate from the range of 9000 then to 3200. Barclays had to quickly come back and setup branches hurriedly in townships like Chilenje and matero and gave out unsecured loans to woo clients back. This is the cycle that is repeating itself this time it has come in an election year and according to prediction its bigger than the last cycle. As a Christian l call it favoured in season because that’s how God operates. How do you explain Glencore who…

  25. PF WE ARE NOT STUPID WE KNOW WHAT YOU HAVE DONE YOU HAVE PLUNGED US INTO FURTHER DEBT BY AUCTIONING BONDS AND BORROWING HUNDREDS OF THOUSANDS OF DOLLARS TO APPRECIATE THE KWACHA SO YOU CAN LOOK GOOD GOING INTO ELECTIONS ! WE ARE GOING TO SUFFER YOUR HUNGER FOR A WIN FOR MANY YEARS AFTER YOUR STAGED APPRECIATION !!

Comments are closed.

- Advertisement -

Latest News

Green Buffaloes Suffer Covid Setback Before COSAFA CAF Womens Champions League Kick Off

Green Buffaloes have suffered a setback as they commence their campaign in the inaugural COSAFA Zone CAF Women’s Champions...

More Articles In This Category

- Advertisement -