Friday, April 19, 2024

President-elect HH’s win boosts Zambia’s Eurobonds, kwacha surge

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A Financial Analyst has attributed the recent surge in the kwacha and Zambia’s 1 billion dollar Eurobonds to investor confidence following the declaration of Hakainde Hichilema as President-elect in the just ended 2021 general polls.

Mr. Mambo Hamaundu says market forces are confident that the incoming administration will improve the economy.

Speaking in an interview with ZANIS, Mr Hamaundu predicted that the kwacha will continue to appreciate leading up to the inauguration of the President-elect.

He said pronouncements that will be made during the inauguration ceremony will be key in determining whether the dollar to kwacha rate will continue improving.

He however said there must be a fundamental shift to create kwacha stability in the long term.

“The kwacha dollar rate is determined by demand and supply so it is a question of what shift are we going to have that will alter the demand and supply to ensure a balance that will lead to a stable exchange,” Mr Hamaundu said.

And Mr Hamaundu explained that the surge in Zambia’s Eurobonds means the price of the country’s bonds on the market where they are traded in London have increased.

He said Zambia still has an obligation to pay the 1 billion dollar Eurobond due in 2024.

He however said having a strong currency will make it easy for Zambia to pay back the 1 billion dollar Eurobond due in 2024.

“Those bonds are in dollars so the better the rate of exchange, the better it will be when the time to pay arises,” he said.

Zambia’s $1 billion of Eurobonds due in 2024 jumped 11 percent to 74.14 cents on the dollar in London yesterday, the biggest gain since March 2020.

The local currency also surged the most since November 2015 to 19.1375 per dollar.

14 COMMENTS

  1. Where that id1ot KZ who said that can’t happen, wow there it is….. Happening, under ur murderous dictator meno meno rule everything was reverse like hhis teeth

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  2. Where that id1ot KZ who said that can’t happen, wow there it is….. Happening, under ur murderous dictator meno meno rule everything was reverse like his teeth

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  3. Kaizar Zulu is just feeling jealous how things have started to unfold for Zambia. Chakunyonga iwe you bitter man. We told you waletalika.

  4. Thats what Market sentiments do. They drive the markets. Its all about Trust and Confidence. HH has track record so the Markets are trusting him to prudently manage the Economy and turn it around. At the Inauguration Ceremony HH will have an opportunity to spell out his vision for his Govt. HH should set some targets on what he will achieve in his first 100 days in Office. Good luck HH.

  5. UNFORTUNATELY KAMBWILI, NAWAKWI, LUSAMBO, GBM, SUNDAY CHANDA, etc, THEY DONT UNDERSTAND THESE MARKET FUNDAMENTALS, REMEMBER HOW THEY WERE TEASING HH DURING CAMPAIGN SAYING THIS CANT HAPPEN?
    THESE ARE THE TYPE OF PEOPLE PF WANTED TO RULE US. EVEN THIS TROLL CALLED KZ, IT WAS YEANING EVEN THIS MORNING…. ATI HE IS WAITING FOR 1:1 AND THESE ARE THE PEOPLE WHO ARE SUPPOSED TO BE ADVISORS TO THE PRESIDENT. POOR LUNGU HE SOUNDED HIMSELF WITH INCOMPETENT PEOPLE.

  6. This is for the UK based troll/ impostor..really laughable:

    “Humpty Dumpty sat on a wall
    Humpty Dumpty had a great fall
    All the king’s horses and all the king’s men
    Couldn’t put Humpty together again…”

  7. The analyst’s last name says it all. He will never give an objective analysis of zambia economic performance as long as the premier hails from south

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  8. Cry cry some more UK based Troll/ impostor …you and BUFFOON CK including Fat Albert GBM tried to divide the country with your hate speeches but Zambians saw through you!!
    Really laughable….

  9. Tarino the only buff00n here is you who was hiding your upnd loyalty because you had no confidence that they would win. Now that your fellow tribesmen has won you have come out in open as a full blown upnd cow’s testicIe sack. Fuseke iwe kikii. Your party has won and yet you are still hiding away in diaspora still cleaning toilets. You don’t even have confidence to come back and live under the leadership of your fellow tallnga cIown

  10. I offer my warm congratulations to President-Elect Hakainde Hichilema of Zambia. The success of the recent election provides a basis for continued stability and development in Zambia and the Southern African region.

    We appreciate the work of the Government and electoral authority of the Republic of Zambia in holding a successful election amid the danger of the COVID-19 pandemic.

    We thank outgoing President Edgar Lungu for his leadership during his term in office and his role as a partner for peace and development within the Southern African Development Community and the African Union.

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