The Kwacha has continued to tumble against the US dollar which has proved bullish against the local unit for some time now.
The local currency weakened further on Thursday after posting the biggest single day decline this year after a surge in demand for the dollar amid high liquidity levels in the money market.
This is according to the Cavmont Bank Market Report which was posted on the Bank’s website and monitored by ZANIS in Lusaka today.
The local unit opened at K5.640 to K5.670 before closing at K5.680 to K5.710.
The bank anticipates the Kwacha to recover in the short term on the backdrop of the bond auction which will be held today, Friday, February 14.
The Bank’s aggregate current account balance increased by K100.46 million to K2, 232.85 million while the cost for interbank borrowing and lending rose by 0.05 percent to 10.00 percent.
Funds traded on interbank were K45 million.
ZANIS/
Sink Zambia sink?
This country is now in a free fall, will soon be rebasing the “Kwacha” again, or is it “Kwaila”.
so 15 bags you buy yourself a bag on uunga. my dollar?
Most African currencies are troubled currently, all you bloggers above don’t seem to understand global trends regarding the doller and other currencies ,rand,pula,Nira,shelling and many more are all in trouble agianest the doller, but will recover soon.its nothing to do with Zambia as you want to portray it especially goncalves & sun of something…
We all understand ‘global trends’ however you don’t seem to have an answer why it has reached this level (say from around K4.90 to K5.00) to what it is now. The reason is that simple: More Dollars have gone OUT then those that have come IN, reason being the people with Dollars feel their money is better invested elsewhere and the reason for that is UNCERTAINITY in our economy. And if you stay in Zambia this will affect you as soon as our largest import, fuel, goes up. Now there is something for you to chew on
you are right man, it looks like people just post comments to be heard, any way Zambia is not alone, RSA is in the same problem of which Zambia is far below RSA’s economy. People must learn the world economic problems, USA has not fully recovered from the self inflicted recession of 2008 and the wars they are engaging with other countries. Give Zambia a fair comment. Goncalves, what do you benefit by wishing Zambia to sink further?
True as it maybe that most African countries ‘s currencies are tumbling against the US$dollar, Zambia ‘s case is unique in that the rate at which this happening is 120% higher than SA, Botsana, Namibia and most African countries due to economic mismanagement by Sata and the PF. If in doubt just compare Kwacha with the SA rand and other local currencies at the time it was rebased and now, you will find my estimation credible.
So its not just the downward trend we should dwell on when judging how our kwacha is doing compared to other regional currencies,but the rate at which our kwacha is losing value,lest we become complacent and lose objectivity and direction in our arguments.
Mwanawasa a Lenge(Bantu botatwe) managed to reverse the kwacha ‘s down ward trend by 50% in just five…
Not surprising at all.
Uko, let’ s wait and see. Very soon, it’ ll be K10.00/ US dollar. Mwanawasa and Rupiah Banda led a stable and manageable economy. We are now moving swiftly on the super highway to economic doom something which you Zambians voted for in 2011.
Only 7.50 by Easter
Levy and RB appointed their Finance Ministers on merit. The major qualification for a PF Finance Minister is Tribe and relationship to the President! PF government reeks of Bemba tribalism and nepotism ! PF is a very wasteful, tribally stingy, and selfish government! Pamberi ne Bemba!
@wanzelu ,,the kwacha is trading very well againest the rand,,,coming to the dollar I don’t know where you live but us here in Livingstone everywhere we look we see development,meaning the Govt has spent on capital projects and naturally will have low reserves,soon reserves will rise and rates will normalize, what development did your mwanawasa bring he just built up reserves and stopped importing thereby creating nodemand for the dollar that all and again you bring tribe it’s being lenje or kaonde but the individual and what principles carry you.Bo wanzelu please..
@Chinyama
If you skipped Maths classes my friend , its time to go back and revisit the subject please I beg you, because such number ignorance is extremely dangerous for our country’s economy if you are in some nepotism created position of responsibility in the PF government..
I am not in PF I have already outlined.but what causes high exchange rates is the high demand for the Dollar, these huge projects require foreign exchange purchases hence alittle stress in demand for the dollar.Ask your cousins here to tell you about the developmental projects that are consuming most forex,it’s forex well spent.I actually would prefer cheating with a Zambia based blogger for facts not illussions.
Simply put, currency, from any country, represents the value and strength of that nation to be able to compensate the holder of those funds, with either services, products, or resources.
That kwacha in your hand, is a guarantee by Zambia, that it is worth the value designated on the note, and that it will be worth while in holding. So the foundation for any monetary system, is a good transparent legal structure, a relatively uncorrupted political scene, and a prosperous resilient economy. Because those are the vehicles by which you are ensured of that currency’s value. Corrupt countries with obscure legal systems, isn’t the place to make a big investment.
Essentially, when it drops in value, something has effected that foundation. Something has changed the perceived value…
Kcm busy externailising funds. Foreigners transfer funds everyday to their countries. Check for instace at lumumba post office there is an indian who sends moneyvto indiaceveryday. I saw that for a weak and was wondering why. If it allowed then its okay.
Also this externalisation will cause exchange rate problems.not what others are saying.
@Chinyama
The discourse on foreign currency movements is a long one. Our Zambian economy is small and usually the Kwacha’s strength compared to external currencies is predicated on foreign inflows. The stark reality is that our fx earnings fall behind demand. And if this continues, it will drive prices up leading to poverty. And when this happens, the nation will se trouble……
At least we are on the same page.i try to keep it simple for my friend wanzelu to understand.Ndate muinzikai?
Currency Planners should cement the fundamentals in the Kwacha movements long-term not the cyclical artificial speculative shocks occasionally driven by normal business cycles It shows you something recurrent Business cycles as mentioned above shouldn’t affect the movement that much especially were people plan only marginal We need to see the Kwacha in gains and losses being analyzed in the regions as one of the tradable Currently on the Rand Pula Naira and the USD appears on most boards including sky and SABC This is also true on the tracking of economies Zambia not listed and mentioned with Nigeria overtaking South Africa as an economic , something to worry and follow
Left for now //
I want to commend what I am seeing as a progressive maturing of bloggers. Either LT is censoring some bloggers or there has been reduction in the number of those who can only insult. Thank you Zambians for sliding towards maturity……….
Even wanzelu has improved his vocabulary after being told days ago.We are making progress at last.
@ Wanzelu
Mwanawasa a Lenge(Bantu botatwe) managed to reverse the kwacha ‘s down ward trend by 50%.
Do you know the Zambian economic history?Mwanawasa and RB did not do anything about the strength of the Kwacha. In my own opinion they have been the worst presidents so far. Chiluba implemented HIPC and as a result the Kwacha’s credibility was restored because of the 90% Debt forgiveness you got from creditors.So stop waffling.