Government says it is disturbed with the current volatility of the Kwacha on the foreign exchange market.
Finance and National Planning Minister, Situmbeko Musokotwane, said the continued depreciation of the local currency against the US Dollar is unjustifiable.
Dr. Muskotawne said this when he addressed various stakeholders in the financial market at his office in Lusaka today.
He said there is need to revisit the foreign exchange supply in the country as a measure of safeguarding the Kwacha from further depreciation.
Dr. Musokotwane maintained that the rate at which the local currency is trading against the US Dollar is too high to be attributed to the fall in Copper prices and the global economic crisis.
He has since urged major players in the financial market to ensure that they create a balance in trade adding that the current trends in the foreign exchange rates are totally unjustifiable.
And speaking at the same occasion Bank of Zambia Governor, Caleb Fundanga, urged major business entities in the country to desist from trading local goods in foreign exchange.
Dr. Fundanga warned that the trend may lead to instability in the local currency which could lead to an unfriendly business environment.
He, further, urged business houses such as manufacturers to ensure that they buy foreign exchange quantities that are bearable to the market.
In attendance at the meeting were representatives from the ministry of nergy, Nyiombo transport, Zain Zambia, Omnia Fertilisers and Millers Association of Zambia.
Others representatives in attendance were from Simba Milling Company, Superior Milling, Zambeef and Zamanita.
ZANIS/CM/PC/ENDS/SJK
Do something you people!!!!!!!!!!!!!!!!!
During the times of LPM, the Kwacha gained significantly. Whats cutting RB? 😕
Ala LT tamulaisala?Anyway thank you so much.
I thought the kwacha has started appreciating.But our currency zo-ona kwati ni Zim Dollar imagine na Malawan Kwacha is stronger than ours sure. 8->8->8->8->
yes do something guys!:d/
number 5:d/
Bring bak Magande:)>-
Moin Moin from Gelemani.
Lusaka times online. Let me read.
If Zimbabwe is paying its civil servants in US dollar as well as allow people to trade in the same currency, where do you think the ordinary Zimbabweans are getting dollar from? Obviously it will be Zambia, the marketeers from Zim will sweep even the very small cheap one dollar notes from the bureaus. Right now Zambia is running two countries, (Zimbabwe and Zambia) thats why dollar is scarce. Unless we start doing what Zimbabwe used to do to Zambia when our currency was worse than Zim. They forced every Zambian to declare a minimum amount of USA dollar when going into Zim and demanded the show of receipts on how you spend the money and which bank they cashed the forex. We can learn from Zim.
Testing
I know we can do better when we know what to do.
Hi Jam@co.
Hope we wont end up the zimbabwan way with our currency
#8. Kuda: If Zimbabwe is paying its civil servants in US dollar as well as allow people to trade in the same currency, where do you think the ordinary Zimbabweans are getting dollar from? Obviously it will be Zambia…
Wow, that is very good analysis you have got there. I honestly never looked at it that way. This must be very true and must require further investigations.
You are really on to something. Thank you for the more than average analysis. I honestly would have never looked at it this way.
GOOD JOB :)>-
It’s very normal for the Zedain Kwacha to depreciate at times because politicians don’t know sh*t about pure economics.
#8. Kuda: If Zimbabwe is paying its civil servants in US dollar as well as allow people to trade in the same currency, where do you think the ordinary Zimbabweans are getting dollar from? Obviously it will be Zambia…
Wow, that is very good analysis you have got there. I honestly never looked at it that way. This must be very true and must require further investigations.
You are really on to something. Thank you for the more than average analysis. I honestly would have never looked at it this way.
GOOD JOB :)>- :)>-
10. His Excellency
good morning to you.
Well there is a lot one can learn from other countries as Kunda (8) has put it!!
It becomes a problem to a country like Zambia if the economic language you speak is a borrowed one.
RB is flying from country to country and praising these foreign countries to an extent that Zambia as a nation means nothing!!
For as long as our exports are bad, kwacha shall continue to fall.
pls pls bring back magande at least he did a good job. perharps musokotwane shud start working with magande. the rate at which the kwacha is depreciating is really worrisome and something just needs to be done. we want magande we want magande :d/
😕
#8 Kuda much better explanation than one from our minister thanks for your view.i bet none of our economists has looked at it this way.keep it up.
Eeeeh…, its a catastophic disaster
The ‘depreciation of national currency’ is world wide. Even the developed countries are feeling the pinch.. You are not alone Zambia.
Lets wait for nature to take its own course..
Panicking will just make things worse and in the process make more blunders in attempt to correct it ignorantly..(sems there is a lot of trial and error in trying to fix this kwacha depreciation saga) :-?:-w
#20,should read(seems there is…
Yeah if its kwacha forget . Even caleb fundanga now has been diluted and has stopped thinking like one l had respect for. The kwacha at the moment is in a free fall scale. Bank of Zed cant do anything they are just watching as well. In short we have no regulator at all.
Tabalaisala kanshi.
Jam@co.
NIne Chale
Ba DR Maureen
Chewe
Pipo ala LT is still availabe iseni.
hallo Matworld
$1-K6000.00
This is utter nonesense.
Do we really have a Minister of Finance?
To attribute this to a slump in Copper prices is bull…?
At the current mutengo of $3200.00 per barrel,these Mines are still raking in a big profit otherwise they would have closed immediately the Olympics in China concluded.
why are they hesitating to be on cash accounting? %-(%-(%-(%-(%-(%-(%-(%-(%-(
23. Matworld.
hallo mein guter Freund.
Ati Kwatcha yabola :o:o
Guten Tag!
Seems everyone is an economist nowadays but no one has been able to explain the current crisis clearly so far.
I’m still reading your comments… (:|
WERE IS THE UPGRADE KANSHI8->:^
Waiting for the Upgrade (:|
These guys are making us loose money. So many people in Zambia owe me good monies. Now I have lost 50% of it. My debtors know that you will pay at $1 = K 3 500 as this was ruling rate when we entered into contract.
Imwe fi nyama soya , fi musokotwene do something or bring back Mangande alaa.
[-([-([-([-([-([-([-(
its good for us whan the kwacher deprieciet cos it means wen we sen pounds to zambia its more money in kwacher,let it even go worse
30. nyambe
economy killer Numbala l-) :d
nine chale
HALO,Iam the only one who in every aspect would not claim and want to be an economist.Have you noticed how easy it goes for to explain the law of diminishing returns in lectures and ampi theatres but virtually impossible to translate any of their theories into reality.Believe me ZED is a big circus which will only will be rectified by engineers.
it looks to me as if our kwacha is desperately competing with the Zim dollar instead of taking advantage
maybe they should print K500 000 NOTES
34. ndolic
economy Killer Numbala :)>-
This is simple minister. You guys in GRZ coplained a lot about the crisis as if Zambia is really a major play in the world business. In the end you scared investors and people, by listening to your complaints and lies are pulling out the dola, hence devaluing the Kwacha. You have never been known to stabilise the economy and you always ague with people. Your aguments are also wrong. In short you are crooks or simply chancers and this thing will not lead you anywhere.
Unjustifiable you say?
Well, revisit you basics on demand and supply economic theory Mr. Musokotwanenomics! :d
The burden on bashi Henry RP is just as heavy as his body.We could help by relieving him of his duties
#6 and #29 am with you. This Bwezani and Musokotwane dont know what they are doing. By the time they will leave office we will be buying the Dollar K100,000.00. And this is one of the reason why i wanted Magande to succed LPM.
Beg Magande back at Finance. These are hard times begging for drastic measures. Magande is solid and can take on any one. We need solid leadership that will inspire confidence. We cant go the Zim way, coz of poor old finnished leaership.
20. Cutey/wifey
I think magande is needed. Its true that currencies around the world are all affected but for Zambia it seems there is also negligence on the part of the ministry of finanace therefore there is need to do something about it. The currency can depreciate but there should be a limit to it and it should some how be stable it was going to be better if it stood at 4600.It will make much sense other than it is.
@ Free-Market-Capitlst,
Still on your case(positively though),
your name is a bit of a misnomer it undoubetly casts doubts on your Capitalist credentials you so try hard to ram into people, i can only hope it’s done intentionally, as a laugh though am in doubt of that.
There can be no such thing as ‘FREE-MARKET’ (then) CAPITALIST as figurative description, no!
Every ‘FREE MARKET’ adherent is a ‘CAPITALIST’ and in the same vain every ‘CAPITALIST’ is firm espouser of a the ‘FREE MARKET’ tenets.
Your name alone exhibits gross ignorance of basic Capitalistic albeit zealously,
‘FREE MARKET FUNDAMENTALIST’ or ‘RIGHT WING CAPITALIST’ would be more appropriate…
This comment is ment to be number 40, but it’s awaiting moderation why?, there’s no profanity in it,
—————-
@ # 14 Free-Market-Capitlst & Kuda # 8…
Now what kind of bush economics is that?, everybody knows there’s nowhere to spend that $US’s in Zim the shops are empty,
So question my learned Capitalised friend where do those (Zim)civil spend their Forex?
Zambia,RSA, Mozambique, Botswana etc….Neighbouring countries(SADC) in short.
Under such a scenario we should have an influx of forex into Zambia, so either we are not doing enough to get our fair share or something’s wrong flawed.
Feel free to shoot me an email at
kushnubian(@)gmail.com, we…
The only way Nyamz and the wailers are gonna look as if they are working is to go globe trotting.18hrs resting mid air 3hrs deliberating and half dozing, 6hrs shoping ,streching and meeting ZEDS in diaspora .6hours stretching at the coast and meeting potential image and body builders at the beach 12hrs and back to ZED 18hrs
ndolic
Ka Flag nakandufya ako.Are you the ndolic I know nangu niumbi.Iam in love with your comments today.Ala insamushi nashimpeta so no comments just enjoying your comments guys.
The Lusakan Gigolo,
how are you? Iam also enjoying your comments as well.
Bonse pa site.
Iam enjoying your comments.
LT more News kabili :-??
8->8->8->8->8->
@ # 46,Matworld
Bruva Mat, longtime am believing you’re fine down there, take a walk then get back onto them books,
wiv yo head clear the math shouldn’t be a problem.
ta
Bushe where is the Upgrade?
#42. The Lusakan Gigolo: There can be no such thing as ‘FREE-MARKET’ (then) CAPITALIST as figurative description, no!
There can be such thing as “free market capitalism”. A free market system can consist of a system with govt (anarchism). That is an absolute free market. A market where there is absolutely no govt intervention at all.
Capitalism is free market with govt. But Capitalism can also involve companies lobbying govt to invest in some infrastructure that the company wants. Capitalism can also involve govt intervening in order to correct for market failure. Therefore free market capitalism is an extreme version of the free market but…
cont. #50
but with govt presence in order to handle issues like property rights, rule of law, monetary and fiscal policy.
#43.The Lusakan Gigolo: Now what kind of bush economics is that?, everybody knows there’s nowhere to spend that $US’s in Zim the shops are empty,
On the contrary my friend. Ever since the Zim govt allowed the use of USD and SA Rand, the shops have been filled with merchandise once again. It is simple to explain.
You see, before the Zim currency was hyper-inflated, many of the stuff in shops was either bought locally or from neighboring South Africa. In order to buy from SA, they would either convert Zim Dollar into USD or Rand in order for them to buy goods from SA. This was a bureaucracy in itself. [tbc
Now that the Zim govt has allowed the use of the two currencies, it is much more easier for retailers to import the goods that they sell since the currency they are using is more acceptable and stable.
Banks are also cashing in as this will cause lower interest rates, more willingness to lend since the currency which is circulating in the country is more stable and widely acceptable.
In short, Zim is on the path to recovery. Now for the average Zim who has no access to USD or SA Rand, they would go to neighboring countries to get the USD they solely desire or need in order to buy goods/services since no one is accepting Zim Dollar in Zimbabwe at the moment.
BTW….LUSAKA TIMES.
Love the New script and upgrade. Looks much more better than the typical wordpress template used before.
GOOD JOB
test
test 123
Now entries will only be posted when a valid email ad is given ?
test
Zambian kwacha can’t depriciate like that.Rb must be respoonsible to give $s to Zimbabwe.Zimbabwe was too cruel to zambians.I can’t see why now they getting our $.It was even hard for zambians to pass via zim when going to south africa.These zimbabweans are clever and thieves.Maybe tthey’re busy getting $s in zed.They’ve people buying $s in zambia hence kwacha depreciating.Where are they getting $s to pay all cival workers.govt wake up!It’s not a time to sleep nowdays fimambala.Mwanawasa was da only one who cared for people.Rb is too corrupt,maybe is the one selling $s to zimbabwe.He just cares about Money.
@ # 51.Free-MarketCapitlst…
Firstly am glad you agree with my suggestion that ….”free market capitalism is an extreme version of the free market” …in your own words.
There an appropriate figurative for you should FREE-MARKET FUNDAMENTALIST/EXTREMIST or RIGHT WING CAPITALIST.
Now i will dwell on the Zim crisis in the nxt post
Your suggestion on me changing my username to free-market-extremist has been taken into consideration but I still retain my current username (free-market-capitalist) but I do thank you for your suggestion.
@ # 59.Free-Market Extremist
I took it for granted (that u could connect the dots), forgive me
U start of well by stating that Zim $ isn’t not accepted in Zim it’s useless,
in short the govt through the central bank(Reserve Bank of Zim) have given up on there currency, they have no currency of their own, there’s only 1 other country that comes to mind in a similar scenario-SOMALIA,
Now u tell me, why would that currency be accepted across the stream in Zam or RSA,
Why should someone in Katondo buy a piece of paper that’s worthless even in Zim,
that currency has been reprinted so many times within last year, u don’t even which notes are legal tender or not,
contd in…
Now u tell me, why would that currency be accepted across the stream in Zam or RSA,
Who said anything about it being accepted in Zam or RSA. I know you know this so I do not know why I am telling you this. There are many forms used when getting foreign currency. One of them is trade which is the biggest. In Zam and RSA, Zimbabweans have crossed over in order to sell little items just to gain a stable currency. With the USD in use, they could sell their goods in Zam/RSA and convert whichever currency they have gotten into USD.
I know you know this and I know you know Zimbabweans are not that stup!d
Now where was i ?
Or yeah, your lame assumption that Zim is now headed for recovery simply by abandoning their currency is wishful thinking at most..
Just last week their new Prime Minister was RSA asking for the same forex to pay workers in Zim,why would he do that if there’s plenty in his banks?
By the way, those banks you claim are cashing in are closing, Central African Building Society (CABS) closed 37 branches just last week, that’s the largest mortage lender in Zim, i bet u never heard of it, huh!
And do you know how much a teacher is getting paid in that same forex US$100, and do you know how commodities are over priced, 10 KG of potatoes is US$5,
condt below
Just last week their new Prime Minister was RSA asking for the same forex to pay workers in Zim,why would he do that if there’s plenty in his banks?
Because Banks in Zim are for the most part private institutions. You are confusing govt spending with consumer spending. Where do you think businesses like supermarkets got the money to restock the shelves….of course from Banks. One of the ways banks earn income is through loans using for the most part, a fractional reserve system. Maybe Banks are not willing to lend to govt simply because they are not assured of a return in their investment. You know this so I dont have to explain this to you.
By the way, those banks you claim are cashing in are closing, Central African Building Society (CABS) closed 37 branches just last week, that’s the largest mortage lender in Zim, i bet u never heard of it, huh!
This is simple economics of capital being to large. Downsizing is inevitable. The Zim economy has been in decline for years now. The use of foreign currency as legal tender was enacted some few months ago. The downsizing of capital was bound to happen as it takes a while to get/get rid of capital. The foreign currency legal tender thing was enacted a few months ago, you cannot expect cold turkey results. That is like believing Sata can change the Zed economy within 90…
And do you know how much a teacher is getting paid in that same forex US$100, and do you know how commodities are over priced, 10 KG of potatoes is US$5,
Commodities are priced at the optimal amount. If you take into account the different costs involved in getting the same commodities, they are priced at the optimal amount. Just because a teacher cannot afford the commodities is not to say the person working for a private firm is under the same circumstances. If it was like that, the retailers would not be able to make profits.
I think you are mixing up what is socially viable with what is economically viable. Yes socially it is not viable but economically it works.
In a nut shell,
please check your facts before dashing to conclusions,
Forex or no forex, goods are still cheaper outside Zim, talk to people on the ground, those who can are still crossing to buy bare neccessities across the borders,
i friends here who are sellings food hamper (comprising half a kg salt, 1 litre cooking, half a Kg sugar and 5 kg Mealie Meal) at US$25 you think that’s a joke,
And people are not using banks, it’s effectively a cash economy now, you may never get your money as and when you want if you deposit your money in bank, so what do you mean banks are rakeing in forex,that bollocks!
Under the present scenario we should be benefiting, stop whineing
Forex or no forex, goods are still cheaper outside Zim, talk to people on the ground, those who can are still crossing to buy bare neccessities across the borders
No one said the goods are cheaper in Zim. Yes the goods are cheaper outside Zim but who is to say no one is buying the goods in Zim. Like I said, if that was the case then the people selling the goods would not be able to make profits. If you live in border towns, yes crossing the boarder will allow you the benefit of acquiring cheaper goods but for those in central cities/towns and taking into account the shoe-leather costs, they will do what provides them the most benefit and that is acquiring goods within Zim.
And people are not using banks, it’s effectively a cash economy now, you may never get your money as and when you want if you deposit your money in bank, so what do you mean banks are rakeing in forex,that bollocks!
From the sub-prime mortgage crisis, it should be evident to you that deposits is not the only source of lending capital for banks. There are different tactics that banks use. It could be the bond market o borrowing from other banks abroad. Who knows. Again…you already know this.
Zimbabweans can also get dollars from other surrounding countries like South Africa, so it is not the cause of Kwacha depreciation.
Start creating cottage industries. Lack of skills and technology among small producers is hampering production and development.
Zambia is relying too much on foreign investors and ignoring small local industries.
To sustain an economy like Zambia, cottage industries are vital. Assist these small producers with the skills they need. Dumping fertilisers on small farmers and expecting better results has a limited out come.
An economy can never recover by abandoning their currency, never!!
It simply leaves you at the mercy of somebody else’s monetary policy, you can’t effect any interest rate changes you want, monitor the flow of funds etc
Why do you think Britain is resisting joining the Euro zone, they’re trying to retain control of their currency i.e is control over their economy
You’re some joker iwe yaah…..You must be some mere student abroad intoxicated with theories, your knowledge of economics is less than basic.
You’re the type always bombarding your family and friends with all them theories back home
Unfortunately your knee jerk comments have exposed u for who you are.
Am out
You’re some joker iwe yaah…..You must be some mere student abroad intoxicated with theories, your knowledge of economics is less than basic.
You’re the type always bombarding your family and friends with all them theories back home
Unfortunately your knee jerk comments have expose
Your arguments have been riddled with ad-hominem, straw-man and poisoning the well tactics.
Next time I would urge you to attack the argument rather than the person making the argument. It makes you look less like a senile grown man with low self esteem trying to pick a fight with a kid on the internet.
I rest my case
Jury, whats your verdict?
Am sorry u seem afronted by being asked to back your conclusions with specifics on the ground, there’s very little i can do about that; also thanks for tutoring me on how banks raise money through other means than retail, am sure i learnt something new.
However specifics would’ve scored u more marks that’s u need to show, i’ll be glad to swallow humble pie if proved wrong. Now the bank i mentioned is shutting down it’s not the 1st and not the last, am sure clever u knows there’s difference btn cutting down and winding down due to expenses imposed by the very forex regime you applaud , 2ndly banks issuing bonds in Zim at the moment? specifics pls that’s all i ask,…
Pls be informed that the debt and equity markets in Zim are suspended why? they’re having problems valueing stocks and securities in forex, some of us will b millionaires if they make that mistake, that’s a dilemma for them…. tell me which private banks would want to lend out money in such an environment, maybe u know something those of with a presence in Zim dont, go ahead and tell us, the chief lender to businesses primarily farmers upto now was the central bank but they are now broke, again i sense your over zealousness but being prudent analysist isn’t just things placking out assumptions from the txt book but also looking at the ramifications on the ground, and i urge u to do…
As for your other little assumption about rich and middle class pipo buying from local shops, pls pls stop assuming things, i was in Zim as recent as Dec, even govt Ministers that’s people with access to forex are being fed with South African food packs bought by the govt, why cant they shop locally, go to beit bridge and see how the rich are always troting to SA atleast every month, provide me with atleast one specific and i will gladly swallow humble pie, If abandoning your currency was a path to recovery why did Gono try so hard to defend the Zim $ last yr, are u smarter than him, every poor country would’ve taken that short cut my genius friend, pls pls address this last point pls
jus work on this clap and don’t expect bussiness entities to do this for you GRZ. these people are in bussiness and they want more profit from a dollar.what do you expect. no vision, nothing to expect.
blame it on speculator sir!!!! This was foreseable a yr ago. Economic projections all indicated the tough times ahead of us but decided to sleep on the deck. RB will be thinking he has been bewitched so he could leave office, no that is just the reality. It was is argument which insisted that Zambia was not gonna be devastated by the global recession and that the major trading partners, China, was going to be shock free. Guess what, China is no island.