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Alba Iulia
Tuesday, September 28, 2021

Denny Kalyalya bounces back as Bank of Zambia Governor

Economy Denny Kalyalya bounces back as Bank of Zambia Governor

Denny Kalyalya has bounced back as Bank of Zambia Governor after he was fired by former President Edgar Lungu in August last year.

According to a press statement released to the media by President Hakainde Hichilema’s special assistant for Press and Public relations Anthony Bwalya, the president has. with immediate effect appointed Dr Denny Kalyalya as Bank of Zambia Governor in line with Article 214 of the Constitution of Zambia.

In the same statement, State House announced the appointment Mr Mulilo Dimas as Attorney General and Mr Marshal Mubambe Muchende as Solicitor General.

Last year in August Zambian President Edgar Lungu on Saturday summarily dismissed central bank governor Denny Kalyalya and replaced him with former deputy finance minister Christopher Mphanza Mvunga, a statement from State House said.

“President Lungu has terminated the contract of Bank of Zambia governor Dr Denny Kalyalya with immediate effect,” said the statement, which did not provide reasons for the dismissal.

Kalyalya, who previously served as a World Bank executive director, was appointed in February 2015 and had his contract extended in 2018 until 2023.

His dismissal came barely three days after the central bank had cut its benchmark lending rate by 125 basis points to 8.0% to try to safeguard financial sector stability and protect livelihoods in the wake of the COVID-19 pandemic.

President Lungu received widespread condemnation for firing Dr Kalyalya at the time.

“There is no real motive here, there is no rationale to this decision,” said Trevor Simumba. “It is something that has shocked everyone. It is very much a political decision.”

Mr Kalyalya “was just doing his job,” Mr Simumba said. But the president wants a pliant central bank ahead of next year’s election, he said. “The economy is on its knees, it is at rock bottom right now,” Mr Simumba added. Mr Kalyalya’s term had been due to end in 2023. Mr Mvunga’s appointment is subject to parliamentary approval.

The sacking was also criticised by Tito Mboweni, the South African former finance minister and former governor of the South African Reserve Bank, in tweets that later led President Cyril Ramaphosa to issue an official reprimand.

“Presidents in Africa must stop this nonsense of waking up in the morning and fire a central bank governor,” Mr Mboweni said. Mr Ramaphosa said on Monday that the comments were “unfortunate” and “the issue is being addressed to ensure that such an incident does not occur again”.

40 COMMENTS

  1. Welcome back, Dr. Kalyalya…Lazy Lungu only sacked you for being professional to appoint his fellow pub mate Mvunga an accountant by profession, no shame at all that lazy man.

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  2. Welcome move. We hope his bouncing back will assist stabilise the Exchange rate against other major convertible currencies, which has been depreciating in recent weeks

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  3. @Tarino Orange…old age my friend. It was K22.6765 when Kalyalya was Governor and actually dropped to K15.5551 when Mvunga was in the same job. It’s now at 16.6885…here must have been some serious juju when the Ngoni man was there. Anyway good luck to him

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  4. Kalyalya stabilised the kwacha under very difficult, bankrupt PF spending and looting…….

    When mvunga came in , it was becoming clear that HH might win and IMF had approved special drawing rights to bump up reserves, hence the appreciation of the kwacha……..

    If lungu had won , an exchange rate of
    1 $:35 kwacha is not far fetched…

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  5. IllSayWhatIWant – The problem with you chaps is that you bring your street debates to currency trading you think its the FIFA world cup where you simply look at the scores.

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  6. I would have preferred Caleb fundanga but all the same I hope kalyalya will manage to arrest the exchange rate which has again started climbing and will be at K17 to 1 usd soon.

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  7. Give upnd a chance they dont gave people now…so they oick from old… Mvunga was brilliant mind .kalyalya failed lamentably….He should have keft the play boy mvunga..he plays but very smart but he is a very smart boys…you i know at unza the most playful ones are the most intelligent ones

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  8. @Tarino Orange. I’ve read the PWC and KPMG reports as well as BoZ statements…now since you and Kalyalya are such geniuses, how for X’s sake did he fail to implement such simple measures, that as you call him an ‘accountant’, implemented? Explain without insulting or ridiculing my post

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  9. We just hope all constitutional offices wont be occupied by cousins /relatives to demonstrate the PARETO principle better. Sometimes economists can get crazy. God bless Z.

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  10. This man left when Kwacha was at 22.6.Mvunga came kwacha stabilised and it appreciated to 15.5/USD.Now this man has come to send Kwacha to 30/USD.Wait and see.Paper Qualification is useless without perfomance.bamudala aba has good credentails but perfomance tesana.Wait and see.Awe new dawn with all recycled people.

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  11. Ba HH has nothing so for.I can assure that under kalyalya Kwacha will hit 20 in the next two months.If he is lucky it will hit 18.Nothing will change Zambians.HH has nothing to offer

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  12. @Redo, there’s no accountancy at unza. Dr Kalyalya is a lecturer their.
    Anyway, the BOZ Governor job is not a stand alone institution. The only sure way of a better kwacha performance against the dollar is increased exports and reduced imports.
    So managing to arrest the currency should not be Governor’s day to day things.
    We need agro exports, increased mineral production, tourism and service exports.
    The upnd manifesto is very clear about this kind of stuff.

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  13. Ok, listen, you’re driving to church then you park somewhere, then your engine fails to start. So you call the mechanic. He comes and taps a few time on your starter motor and so you manage to get to church on time
    Look, the mechanic has not done his job yet. That’s not fixing. He’ll fix when you buy a new starter.
    I hope I’m clear.

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  14. Congratulations Dr Kalyalya. You’re a well respected man in the economics community the world over and I hope your coming back will bear an impact at world bank where you worked with Dr Musokotwane.

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  15. Mr. Mvunga, thank you for your time. Do not despair, your drinking sprees were only politicized due to elections.
    Your father was a powerful lawyer, still is, and you’ve come up well. He sure must be proud. Your CV keeps getting bigger and bigger.
    Zambians measure you by the size of your degree and not what you can really offer.
    You’re one of those Zambians that stand out and we’re proud of you sir.

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  16. Dollar will start going up soon.
    Bank governor will not change
    Anything.The more dollars in the
    Market the rate goes down .The
    Less dollar in the Market the higher the rate.If IMF pumps dollar
    The rate will go down.

  17. flag Jigga Kayama Simangulungwa (formerly Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Honeybee)

    Not sure about recycling and reappointing these people. He presided over a really poor economy (political pressure or not). His appointment shouldn’t just about the fact that he was fired by Lungu… but his proven record and experience. His record is terrible I’m afraid. Good luck to him and to BOZ.

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  18. IllSayWhatIWant – So if you have read those reports as you claim why were beating about the bush..why are you baiting? Asking about the Kwacha during tenure of each BOZ governor. You are trying to be a smart £$$.

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  19. Personally I would turn down the appointment especially from another politician. I’m not conversant with this field but as they say once bitten twice shy. In Bemba we say akabwelelo kalalya. Otherwise I wish every success.

  20. Only virulent , noxious nincompoops will denigrate Dr Kalyalya, a highly qualified economist with equally compelling experience. His devotion to patriotic , professional service knows no bounds . As an Easterner i consider myself lucky to count him as one of my best friends since our days at UNZA. He is a global asset and Zambia is lucky to have him. Let us celebrate and. Utilize our brilliant minds, Situmbeko included.

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