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Govt Active On Stabilising Kwacha –Chikwanda
AS The Kwacha continued to regain its strength against the US dollar yesterday, Minister of Finance Alexander Chikwanda has said the Bank of Zambia is taking the necessary measures to ensure stability of the currency.
Mr Chikwanda, who outlined internal and external factors responsible for the depreciation of the Kwacha, said yesterday that in the long term, Zambia will need to increase productivity and export earnings.
In a ministerial statement in Parliament, Mr Chikwanda said Government is aware of the difficulties that the volatility of the exchange rate has had on the business community and the general public.
“We do share in the disruptions that this has on business activity, operational costs arising and challenges that are faced with respect to planning,” Mr Chikwanda said.
Mr Chikwanda also said that the depreciation of the exchange rate entails that the treasury is required to provide for more Kwacha to deserve its foreign obligations.
He said the volatility of the exchange rate during the last nine months which increased rapidly in September, is as a result of developments in the domestic as well as global economy.
On the domestic front, he said the deceleration in the mining sector due to falling prices and reduced production has had a negative impact on the exchange rate as the sector accounts for about 70 percent of the country’s foreign exchange earnings.
Mr Chikwanda said despite non-traditional exports increasing over the past few years, the magnitude earned from this segment has not been enough to moderate pressure on the Kwacha.
He, however, said on the external front, the global economy has experienced strong headwinds, which have also contributed to increased volatility in most financial markets as well as near collapse of commodity prices.
“Government and the Bank of Zambia are closely monitoring the developments. Necessary measures with decided circumspection are being taken in the short and long term to ensure stability in the market,” he said.
Meanwhile, a Daily Mail survey conducted in bureaux de change in Lusaka yesterday revealed continued strengthening of the Kwacha, which had hit the K13 mark against the US dollar at the close of Monday.
At most bureaux, the Kwacha was pegged at around K11.80 and K12.00 on the bid and offer, respectively.
The Bank of Zambia rate was at K11.77 and K11.79 on the bid and offer, respectively.
And Mr Chikwanda said during debate in Parliament that the solution for the depreciating Kwacha is increasing production and export earnings to meet various requirements.
Mr Chikwanda said it is unbecoming for anyone to expect that dazzling speeches will influence performance of the Kwacha.
He also called on leaders to stop causing panic in the people saying Zambian economy is very strong this is demonstrated also by traffic congestion on almost all the roads in Lusaka and other provinces.
He was responding to MMD Chadiza MP Allan Mbewe who asked the minister to be courageous and tell Zambians to prepare for the harder times ahead of them. He said when the country is going towards elections, the Kwacha always loses value.
The minister’s statement was debated by several MPs who included Kapiri Mposhi law-maker Eddie Musonda who called for the re-negotiation of prices for copper, Zambia’s mainstay.
Other MPs who debated the matter included Luena ADD MP Mulumeui Imenda, Monze Central (UPND) member Jack Mwiimbu, PF Mpongwe’s Gabriel Namulambe, and Sinda’s Levy Ngoma (MMD).
And Mr Chikwanda has cast a shadow of doubt in his future participation in government.
Responding to a question by Mr Ngoma, Mr Chikwanda said he was too old to continue in Government after 2016.
Posted by Kunda
on October 3, 2015. Filed under LATEST NEWS.
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Forward we can
October 3, 2015 at 10:51 am
Ministry of finance has qualified people to take up that role and knw How to hand this kwacha problem we re experiencing,not you chikwanda!one you dnt have enough energy for this job!how do u intend to increase production when you are not producing more due to loadsheding and poor planning?of which even investors re scared to come and invest in this country!people like you should step down!
Czar
October 3, 2015 at 10:58 am
Stop focusing on people and think of how the whole system should be improved. The tendency of thinking one individual person will solve all our problems will not develop this country. Let’s forward our nation!
Wanyafye Tigers FC
October 3, 2015 at 1:34 pm
Sorry boss but the system is made up of people. They make decisions. The system does not make decisions.
Ng'ombe Mbuzi
October 3, 2015 at 1:45 pm
Correct and one man cannot be the solution just because he is an economist as suggested by some people.
poly
October 3, 2015 at 11:05 am
I expect you Mr Chikwanda to have your garage door down before christmas.
New Educated Zambia©❤√
October 3, 2015 at 12:00 pm
Chikwanda is only just waking up to this crisis. Kiki can this man retire in national interest
Ng'ombe Mbuzi
October 3, 2015 at 1:51 pm
Why can’t your four times losing republican presidential candidate and god HH retire as president of your party? Ukose mambala.
Kwati like so
October 3, 2015 at 1:10 pm
Lets focus on individual coz these chaps ve failed us. Lost characters!
Ng'ombe Mbuzi
October 3, 2015 at 1:47 pm
Focus on your god HH my dear and see how that helps you.
Kwati like so
October 4, 2015 at 2:20 pm
Pathetic failures
Wanyafye Tigers FC
October 3, 2015 at 1:32 pm
Quote – Mr Chikwanda said despite non-traditional exports increasing over the past few years, the magnitude earned from this segment has not been enough to moderate pressure on the Kwacha.
Question is – 50 years after independence, why can’t you reverse that trend? Who is hindering you? You are in power, remember!
Kwati like so
October 3, 2015 at 2:28 pm
Blank
Kwati like so
October 3, 2015 at 2:33 pm
Government of failures kikikiki
breaking News
October 3, 2015 at 2:48 pm
wher ar u going to get things for export when u do have, relying on maize or copper which has no value and you ar not the one who mining it.wake up government this is the time to settle things come to copperbelt our living ar on mining and we ar out from it this indines mwanamwansa brought has capitalise on zambian.when people change their mind it can for real becos tomorow u maybe say why..
Ghetto
October 3, 2015 at 3:15 pm
Dollar is always powerful it will gain soon watch. You need new leaders in Zambia for kwacha to catch up with dollar. Ndeloleshafye.
MCCM
October 3, 2015 at 6:08 pm
We have had 6 presidents to date.From KK upto now has the value of kwacha against dollar been appreciating or depreciating?What makes u feel confident that if hh becomes president kwacha will be gaining.The way the american economy grows cannot be compared to Zambia’s please otherwise mwakulaibepa lyonse.The truth of the matter is that the kwacha under any president will continue to depreciate.The difference can only be the pace at which it will continue to rise.Those who will be there by 2035 are likely to be dealing with a K70 to $1 rate regardless of which president will be in power.During KK’s era we had K1-$1 ratings,from that time it has been rising and never going down(stability terms)
Kwati like so
October 3, 2015 at 7:13 pm
Mccm yo brain something is wrong
Hello Haters
October 3, 2015 at 9:15 pm
Chikwanda has said it all, dazzling speeches won’t make the kwacha strong, it all about production, production production,simple economics, ever since China become the workshop of the world, we have all seen how their economy has performed of late, they are now able to even give Zambia kaloba just at the twinkling of an eye.
Hello Haters
October 3, 2015 at 9:26 pm
@MCCM mudaala imwe inga mwa believer muku wayawayafye noku chulachulafye ifwe TWAKANA, if the 6 have failed according to you then it time to look for the 7th who should do the opposite than sit on our lolos and pray to God to rain manna,while we lazy around in new York and expect God’s intervention on the 18th. Tefyo abomba Lesa bane.
kakolwe
October 3, 2015 at 10:04 pm
??!
Kelly Zee
October 3, 2015 at 11:47 pm
I Hav Just Had A Vision,ECL Is Winning In 2016,and HH Shud Just Mind His Cattle Busines,we Cnt Hav A Tonga As A Presidnt,doller Or No Doller.
New Educated Zambia©❤√
October 4, 2015 at 10:01 am
Tribal pf idiot. Tribal people are dogs. Your excuse of parents really did a nasty job bringing up a bastard such as yourself. I have no respect for tribal fools. And be aware that fools like you die young.
King
October 4, 2015 at 12:32 am
For sure dollar or kwacha shanishani uko, we’re not ready to have hatred infested kachemas as our leaders.
Kalubemba
October 4, 2015 at 12:45 am
Then King, who will b our next president??bcoz we shud vote for another leader
Kalubemba
October 4, 2015 at 12:41 am
Kelly zee hw many voters cards do u have???? If u ve one then beta u keep quite bcoz its the majority who wins.
Joe
October 4, 2015 at 5:59 am
Nigerians say “a stubborn fly goes with the cops in the grave” PF kaponyas will die whilest watching, they will continue voting for the failing government even when they sleep for 7 days on an empty tummy. Wake up fellow Zambians its about HH its about the walfare of our poor Zambians. How pipo keep on loosing employment coz of roadsheding at same time prizes of goods are rising by the blink of an eye????????
Hello Haters
October 4, 2015 at 6:07 am
Kelly zee you should have just ended at not entertaining the idea of having HH as president, but for you to go for the tonga tribe,it’s like hating all easterners because of chagwa’s flaws, you have just exposed your PFool genocidal mindset,in short you saying according to your constitution no tonga should be Republican president.
charleszimba
October 4, 2015 at 2:49 pm
Landeni nomba ati ifintu ni lungu.zambia forward.HH 2016.