Comments on: BREAKING News: 3 Zeroes To Be Removed From Kwacha CURRENCY

By: XnO

XnO — Wed, 25 Jan 2012 12:43:28 +0000

This is another very disappointing move by the by the government. It is now vivid that this regime is more interested in two things i.e payback the previous regime and trying to satisfy only the people who were seen to be campaigning with them. 1st wrong move was permitting street vending. This is a poor policy which does not by any means benefit the Zambian economy which the PF so gallantly said they would improve. 2nd, the ZEROS! This is has a negative effect on the economy as it is not necessary and it in itself, is costly. By doing so so the government will sacrifice the doping inflation rate. Due to time, I will not conclude my point, but I’m sure the great neutral minds will have seen were I’m driving at!

By: kandi

kandi — Tue, 24 Jan 2012 23:34:00 +0000

thanx punza. alot of confusion cleared in my mind after reading that. I was panicking at the thought of what all this will mean

By: CHILE MAN

CHILE MAN — Tue, 24 Jan 2012 19:38:47 +0000

i thank the govenment has though what i was planing because we want to know how many people have stolen the gvernment money

By: mainza k

mainza k — Tue, 24 Jan 2012 17:18:10 +0000

firstly maost people must research a bit more to acquaint themselves with what the government is actually trying to do,the govwernment is not carrying out revaluation but rather redenomination.redenomination is defined as ‘the process of changing the face value of banknotes or coins used in circulating currency’.redenomination which the government is trying to undertake doesnt affect neither aggregate supply nor aggregate demand of an economy.in economics any growth in the economy ia as a result of an increase in demand or supply.also note that a country’s ability to produce is mainly determined by 3 main factors resources ,technology and institutions,not a change in currency.furthermore producers respond to changes in relative prices but redenomination does not change the relative prices.what the government is doing is nothing but a recaliberation of our currency.the problem we are facing right now is as a result of the hyperinflation the zambia went through during the 1990′s our kwacha had to be expressed in higer numbers because of the continually decreasing purchasing power of the kwacha,thus with the slow down in inflation it woud be right to recaliberate our curreny,this will ease the strain on systems and the inconvinience of carrying large stacks of money.moreover this will be a good test for the government to see if they will be able to reduce inflation,because if the fail to do so,the zeros will reappear on our kwacha,examples of countries that have carried out redenomination,zimbabwe,though it failed to control inflation,mozambique,china in 1949,taiwan,brazil,yugoslavia after the second world war,turkey,argentina,denmark,germany in 1873,southafrica in 1961,australia in 1966,new zealand in 1967,the euro has also been redenominated in 2008.so lets argue on solid points

By: bryans

bryans — Tue, 24 Jan 2012 16:02:04 +0000

people think, there is no need of changing coz the quantity will remain the same. if u carry 10 notes of k1000,to make k10000, you will still carry 10 notes of k1 to make k10. the wise will agree

By: Mr wise

Mr wise — Tue, 24 Jan 2012 15:10:49 +0000

@Looking at our GDP marked for export,wont the revaluation of our currency make the trade deficit vary invervely as the balance of payment?

By: Watchman over Watchdog-Galileo Galilei is back!

Watchman over Watchdog-Galileo Galilei is back! — Tue, 24 Jan 2012 15:07:56 +0000

Rebasing the Kwacha by dividing by 1000 means in the effort to REVALUATE the Kwacha, the currency will be improved 1000 times. Its value was lost 1000 times from when we last used the figures we want to get to now.

It was say K10 x 1,000 (loss in value) = K10, 000.
We want K10, 000/1,000 (rebasing) = K10.

We need to rebuild industries that really matter in order to sustain this development. We must become more productive. The MMD killed many industries which somehow taught us some skills. We could assemble cars (FIAT), manufacture radios, batteries, assemble Land Rovers. We used to fly Commercial planes using our Zambia Airways. We used to run ZCCM. These efforts were fine. What was wrong was our attitudes not to run those industries with a profit motive. Our people need to get busy, let them acquire skills.We have lost a lot of people who ran these kinds of industries.

The challenge is to redevelop this cadre of skilled people and technicians so that we become innovative. The Zambian economy will not be strengthened by this move alone.

We also have to be recognise the increased population.

The Kwacha will then hold and compete favourably.

By: Wanyafye Tigers 1 Profund Warriors 1

Wanyafye Tigers 1 Profund Warriors 1 — Tue, 24 Jan 2012 14:46:37 +0000

@PUNZA – thx. This will also help the GRZ establish just how much kwacha there is in circulation and at BOZ now and GRZ plan for any future reprints fairly well.

By: Wanyafye Tigers 1 Profund Warriors 1

Wanyafye Tigers 1 Profund Warriors 1 — Tue, 24 Jan 2012 14:33:19 +0000

Good news – short time at Alpha Bar is now 50 ngwee only.

By: Mudenda

Mudenda — Tue, 24 Jan 2012 14:29:09 +0000

@ PUNZA, thanx alot for a piece of analysis. I was completely lost with the issue of removing 3 zeros.I now understand perfectly well.Looking forward to hear more from you.