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Rebasing Won’t Strengthen The Currency Says UNZA Don
A professor of economics at the University of Zambia has charged that rebasing the Kwacha on the basis of strengthening the local currency is misdirected.
Professor Vanken-tesh Seshamani, a lecturer in the school of Economics says rebasing the currency will not change anything in the country’s economy.
Professor Sesha-mani has told Qfm news in an interview that the move is likely to have an immediate impact on the country%u2019s inflation rate.
He was however quick to mention that now that the rebasing process is in progress, it will be difficult for government to reverse it.
A section of stakeholders has called on government to halt the rebasing process stating that the process is costly and have further advised the government to channel resources to needy sectors of the economy
qfm
Posted by
Rose Petal
March 31, 2012 at 8:59 am
It make the kwacha weaker and weaker.It will not change anything.
THE CAMPUS DWELLERS
March 31, 2012 at 10:04 am
But it will make trading in other foreign currencies much more flexible….think about it.
syd
March 31, 2012 at 10:12 am
4 every action there is an effect,be it positive or negative we will need an explanation
Nchenga
March 31, 2012 at 10:32 am
The economy is bad and we want to worsen it by spending some more money on thngs that are just right.some of these commissions and deligations are just wasting our little money that could be used in developing our infrustractures.
The one
March 31, 2012 at 12:09 pm
I hav bin accumlating my K100 & K50 notes are they going 2 hav mo value or can someone pliz shade mo light on wats going 2 happen coz lam totaly blank.
Princess
March 31, 2012 at 2:52 pm
Definately this change of currency will have an impact in future. Wether positive or negative lets hope for the best.
Tonga Bull
March 31, 2012 at 3:09 pm
this rebasing is just a useless project by a visionless govt that does not know anything about how to grow a country’s economy.
dksibande
March 31, 2012 at 4:58 pm
China is striving on our resources.May the many educated brains in & outside gvment suggest things to improve our economy.Add value to resources the counntry is endored with.the core components electric switches is copper get the technology & start manufaturing light switches, sockets, cooker units.In luapula & western provinces make utmost utilisation of water,i.e sugar plantation,fish farming etc can be encouraged.Every province has potential in one or two things.All that is viable than rebasing the kwacha whose outcome is unpredictable.
Paul chishimba
March 31, 2012 at 6:50 pm
Its jst comfusing people’s minds!,it won’t bring any good but bad!
Zambitious
March 31, 2012 at 7:01 pm
But it will make counting easier…….
Percy
March 31, 2012 at 8:05 pm
Remove all the zeroes from the kwacha. It is the one of the “weakest” currencies in the world. It does not potray a good image to the outside world even to potential investors to have a currency trading at K5700 to 1 US Dollar. The rand is R7 to a dollar, the pula of Botswana is even stronger. Even the Malawian Kwacha has more diginity than our Kwacha. Government is right to remove those zeroes coz they make us look very poor compared to other countries. This Professor must just shut up. Who told him that removing the three Zeroes is aimed at strenghthenig th Kwacha? Goverment will embark on other ways to strengthen the currency but this is a good move to make trading easier and to create a good image outside of how strong Zambia’s economy is. Sorry prof but this is an excellent idea from GRZ.
Josh GM
March 31, 2012 at 9:26 pm
If it wont change ANYTHING thats the good news because things will remain status quo but atleast figures will reduce to ‘normal’. do you want in the next 5 years to be getting paid in K5,000,000,000.00 or K10 Billion for a medium income person? Does it make sense?
Botswana Pula (BWP) is about P6.80 to US$ 1 but the two economies between Zambia and Botswana are not 100 millions years apart! P1 = K650 there about.
If you want to know how we look at Zimbabwe’s currency ask a Zimbo how much is a loaf of bread in Zimbabwe about Z$ 1 Million! does it make sense to other countries especially in the west that us where i come from we buy bread 1 million!???
THE TERMINATOR
March 31, 2012 at 10:02 pm
All the people supporting this rebasing of the currency are oblivious to two very crucial factors.
1) The COST of this process and its implications.
Printing new money is not cheap.
2) We cannot run away from the fact that a rise in inflation will be an immediate consequence of this process. So read up on the implications of a rise in inflation and tell us what is good about that.
The govt should have adopted a longer time frame for the implementation of this process, when did they even do a feasibilty study if i may ask to ascertain the need to or not to rebase. Anyway at the end of the day let us hop for the best.
BMC
April 1, 2012 at 2:26 pm
Usually the so called educated people do not do anything to better the life of man kind. it is the less educated who fight to change things. the prof does not want to remove the zeros and he is negative. with the rebased kwacha for you to have a million you will be a true millionare. thank you percy you have said right. time is coming when the govt will encourage farmers to do various things. University graduates come do not bury what you have learned in the sand. if you lernt how to make Engines come though.
Coordinator
April 1, 2012 at 3:10 pm
Desperate choices being made to impress at the expense of real issues, its a shame
down2earth
April 1, 2012 at 8:53 pm
The so called educated people just waffle and waffle and waffle about inflation this and inflation that, and yet the reality speaks for itself. We have worked hard to move from the double digit inflation rate to the famous single digit and there’s nothing tangible to show for it! I’d rather have a currency that is easier to handle than a the one with a lot of zeros just to impress some wacky intellectual gymnast!
shhhiiit
April 1, 2012 at 9:41 pm
no oxygen in Zambia.thank god am no loger there,, hell no,,,very poor governance
GK
April 2, 2012 at 4:30 pm
But ba Prof, who said that rebasing will strengthen the Kwacha? I though the BOZ explained adequately that the value of the currency will remain the same except that transanctions will now be faster resulting in reduced costs of doing business. Ba Prof. namukota ayini?
Ken
April 10, 2012 at 9:58 am
Its just the right time to change the money anyway.