Monday, November 18, 2024

Government is working out modalities to strengthen the depreciating Kwacha-Sampa

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Deputy Finance Minister Miles Sampa
Deputy Finance Minister Miles Sampa

Government has acknowledged the depreciation of the kwacha and is working out modalities to strengthen it in order to compete well against other major foreign currencies.

Finance Deputy Minster Miles Sampa said that the Kwacha is expected to standout fairly and stronger considering an increase in the exportation of oil which is mostly the commodity on high demand by the developed world.

Mr Sampa noted that Zambia had a positive trade surplus from KR112.8 million in November last year to over KR135 million in December 2012.

In an interview with ZANIS in Lusaka today, Mr Sampa expressed confidence that it is imminent that the introduced Rebased Kwacha will stabilise for a much longer period.

The Finance Deputy Minister who attributed the instability of the kwacha against other foreign currencies explained that most commercial banks have been holding on to the Dollar thereby putting more pressure on the kwacha.

Mr Sampa urged Commercial banks across the country to work towards addressing the weakening of the Zambian Kwacha saying if this is not sorted out it will cause hostility for business transactions for persons in the entrepreneurial sector.

He said that financial lending entities should realise they have a part to play in the currency market exchange rate by making sure the exchange rate is made much ideal for the local currency.

Various financial players in the economy have expressed concern with the recent depreciation of the Zambian kwacha and asked government to intervene.

ZANIS/

27 COMMENTS

  1. Useless Boma=Useless Kwacha, ba Miles, just last time you were boasting on facebook that the kwacha is stronger than the SA rand.

  2. Government has acknowledged the depreciation of the kwacha and is working out modalities to strengthen it in order to compete well against other major foreign currencies.
    But Mr Sampa his not outlined the modalities that would strenghthen the local currency, or is it also a donchi kubeba method?

    • In short another dreamed up plan …much like declaring districts without pre-planning and assessment.We need a radical shift in leadership at all levels as well a nation to overcome this petty mindedness and mediocre parade lackluster performance.

  3. “Finance Deputy Minster Miles Sampa said that the Kwacha is expected to standout fairly and stronger considering an increase in the exportation of oil which is mostly the commodity on high demand by the developed world.” Who is exporting oil that will benefit the Kwacha here?

  4. its simple. just introduce the windfall tax and it will bring forex in zed. mwnawasa did it and how did our kwacha behave.

  5. The Kwacha has underperformed for sometime now. For the deputy minister to say govt is working on modalities…… this is mere rhetoric, by now we needed to hear that the modalities which govt had put in place are working. We need to hear clear direction not mere intentions that have no backbone.

  6. Kwacha has underperformed while your copper is being dug carelessly while you came to power on the basis of promising windfall tax among others.

  7. govt alone is the key player in this depreciation since they are the budget holders,policy makers as well as regulators of the financial sector.How can a player in the financial sector contribute to this depreciation.The answer is greed by banks since they have been cornered on interest rate by the capping now they are looking for any loop hole.Boz up your vigilance and advise govt

  8. Sampa you are the last person we should be telling to wake up and smell the coffee.Poor governance affects all sectors of a country.If your President can just wake up and say that he is going to take over Zanaco which as you will recall is what he said or cancel the Railway Systems of Zambia concession “with immediate effect” you honestly think pipo out there will have confidence in your economy?RSZ money is still stuck in seized bank accounts.Which foolish investor will keep his money in such a confused economy?What we are witnessing are results of failure to provide leadership.

  9. Miles and Sata na ba yama babo ba Chikwanda are confused.

    Nowonder Alex Chikwanda wants to resign and go into private enterprise, he knows SATA is crazy and a dunderhead.

  10. Please explain to us these modalities. You cant just throw vague statements at us as if we dont know basic economics

  11. The reason Zambian finances are not as successful as they should be is that government assumes it has the answer to everything. PF is running Zambia like a socialist economy where government is attempting to skew monetary policy when that is the job of BOZ.
    Also, on the issue of jobs, government does not create jobs, the private sector does. Government’s role is to set opportunities (Legislation) and not to spoon feed.

  12. Chachine amano yalishupa.We expectected people like miles that have been to school to be explicity and intelligent when explaining issues.Export of oil, what has that to do with Zambia? And now, the banks r holding on to the dollar, what r u doing about it as pf govt? We need a clearly defined way of how u gonna do it so we can appreciate it.This time around, we need hands on leaders for rapid development, not bakalyafye like aba tumwene mu pf. That must be the reason why the old man alex wanted to resign coz his helper is nowhwere near average thinking n m pretty sure even the little that MMD left must be mudt be gone by now coz of lack of planning

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