Wednesday, June 19, 2024

New Heritage Party Leader Calls on Government to Explain Fluctuation of Kwacha

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The leader of Zambia’s opposition New Heritage Party, Chishala Kateka, has called on the government to explain the recent fluctuations in the country’s currency, the Kwacha. Speaking to reporters on Monday, Ms. Kateka expressed concern over the sudden appreciation of the Kwacha, which she said had not been adequately explained to the public.

According to financial analysts, the Kwacha has demonstrated overall stability for two consecutive weeks, with the local unit appreciating against international currencies such as the US dollar. This has been attributed to improved US dollar supply on the interbank market against limited demand for the greenback. Last week, the Kwacha appreciated by 1.1 percent, the highest rate in the last eight weeks.

However, Ms. Kateka warned that the one-off interventions would not sustain the exchange rate at an adequately low level, and called on the government to embark on economic activities that can generate adequate foreign exchange for the nation if the low exchange rate is to be sustained. She also emphasized the importance of sharing information regarding the cause of foreign exchange rate movements, which would enable the business community to make informed decisions.

In response to Ms. Kateka’s concerns, Dr. Patrick Chileshe, an economist, explained that the low demand for dollars on the market, coupled with the Central Bank’s increased supply of the greenback since the recent appreciation of the local unit, had contributed to the Kwacha’s recent stability. He added that this week, the local currency is expected to be more stable with a minimal appreciation rate of about 0.5 percent.

As of Tuesday, April 12, 2022, the US dollar was buying at K17.39 ngwee and selling at K17.74 ngwee. Despite the recent stability of the Kwacha, Ms. Kateka has warned that her party will only celebrate the lowered exchange rate when it understands the reasons behind the recent fluctuations.

9 COMMENTS

  1. Simple madam…. not enough foreign currency at BoZ, Kwacha goes down, enough foreign currency at BoZ Kwacha gains. No exports not enough foreign currency at BoZ. If someone gives us some dollars our Kwacha gains.

    • 1.Trying everything to bring in the dollars to stbilise the Kwacha. Mopani and KCM not performing..so less dollar coming in. FQM though perfoming…they are on tax holiday..so no dollars coming from them.
      2.Tried to export electricity to rake in some dollars….It created load shedding ..Zambians complained. Dollar tumbled.
      3. Signed contracts with Kenya, Congo and Tanzania for maize exports to earn some dollars. It created shortage of the staple food. Zambians protested. Dollar tumbled.
      4. Musokotwane travelled to washington and gave hope that $188m will soon be released by the IMF. Dollar rebounded.
      5. It became clear that Musokotwane’s hope for the $188m was false as he was seen literally begging for that money…The kwacha tumbled.

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  2. We need to export more, we cannot only rely on BOZ to be releasing FOREX, the key lies in increasing production in all areas.
    Our friends in DRC in 5 years will be producing enough maize to export to neighboring countries such as Tanzania and Kenya and us in Zambia keep treating that crop as if it is only sacred to this land. We are missing so many opportunities to become an export hub for maize in the region. The more we export the more FOREX the nation gets, if we can’t export maize let us go flat out to export soyabeans so that the farmers get a better price and the nation earns FOREX.

  3. Exports improves the exchange rate. So far we have exported more Opposition party members to gain on exchange rate because countries out there want to see the flashing in their streets.

  4. If you notice everytime there is talk of money coming in from imf the kwacha gains. When talks fail the kwacha also falls. So as at now kwacha will continue depreciating until the next round of talks with imf or world bank then it will appreciate again.

  5. Kwacha strengrhened because BOZ released over 350 million dollars so that MOF and higherups elections financiers can take their dollars at a profit back. BOZ Treasury bills undersubscribed speak volumes

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