The International Monetary Fund says it has noted the change in leadership made at the Bank of Zambia over the weekend.
IMF Media Relations Officer Lucie Mboto Fouda says that it is imperative that central banks’ operational independence and credibility is maintained, particularly at this critical time when economic stability is threatened by the COVID-19 pandemic.
Ms. Fouda says without credible institutions and sound policies, sustained economic growth and much needed improvements in living standards will not be possible.
Below is the full statement from the IMF
IMF Statement on Zambia
August 24, 2020
Washington, DC: “In response to media inquiry regarding the recently announced change in leadership at the central bank of Zambia, an IMF spokesman made the following statement:
“We note the change in leadership announced over the weekend at the Bank of Zambia before the end of the previous Governor’s mandate.
“The macroeconomic stability that most developing countries have enjoyed in recent years has greatly relied on the much-improved effectiveness and increased independence of central banks. It is imperative that central banks’ operational independence and credibility is maintained, particularly at this critical time when economic stability is threatened by the COVID-19 pandemic. Without credible institutions and sound policies, sustained economic growth and much needed improvements in living standards will not be possible.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Lucie Mboto Fouda
Phone: +1 202 623-7100Email: [email protected]
@IMFSpokesperson
The diplomatic-speak is clear here. The IMF doesn’t want to get involved in local politics. But it is also saying that reasonable autonomy is critical in running the central bank.
Good morning IMF, so when are you helping us with that much needed relief package? Just a timely reminder that so far you have denied us even our share of the COVID-19 relief package for developing countries.
I see…
Asia, the leftist governments of South America brought unprecedented social and economic development to their people without the input of IMF or World Bank. So when our president works within his constitutional mandate to replace a BOZ governor, it should worry the IMF?? Wake up Africa!!
@ Zambian citizen, but its your PF govt that keeps chasing after an IMF package and not the other way round.
Thank you IMF, we cannot have cadres invade every institution in our country. The new governor is not only unqualified for the position but a cadre who is only going to serve the interest of PF instead of the country. Everyone including outsiders is disgusted with this choice, the mvunga guy brings nothing to the table since he has zero experience with the central bank and he happens to be just a cadre. We will be the next Zimbabwe because this guy is being sent there to print more money for pf’s pockets
The IMF is diplomatically saying Dr Kenny Kalyalya has been removed from his Post as Governor of BOZ b4 his Contract has expired for Political reasons. IMF believes in the Independence of the Central Bank and any interference from the Govt in their day to day operations is unacceptable. The proposed Expansionary Monetary Policy thru the New Governor of BOZ will be disastrous for Zambia. That makes cooperation between the Fund and Govt of Zambia difficult in future. The writing is on the Wall.
@ zambian citizen, perhaps those economies developed due to Independent and autonomous central banks. This is IMF mere advice n not to force anything on us. Its take it or leave it. Only issue is that if our economy melts down it affects not only regional economies but ultimately the global one.
IMF is not assisting us because we have over borrowed. Our Zambian currency still remains the second worst performing currency in the world. Our economy was killed by PF even before Covid 19. So very little room to manouver, sorry for stating the truth but it is what it is
When you hit a good man for no reason, you only show that you are not a good man.
Denny Kalyalya is a competent, vastly experienced economist with a great grasp of how to run BOZ.
When you look at the person that has been appointed in his place, you start wondering what the motives are.
Its unfortunate that we have to continue begging from IMF. But it only shows us how bad, incompetent, careless, and corrupt our leadership is. When MMD letf power, we did not need IMF, and we were at the brink of making a huge leap forward. MCS saw this. But unfortunately he didnt get to finish his term. Since 2015, however, the economy has been run like a kantemba.
You only have to look at the calibre, and integrity of the president’s advisors and constitutional office holders.
If God has mercy on…
Since when did the IMF begin to get involved in local politics? The prerogative to hire and fire the BoZ lies with the President and as long as the status quo remains the same everyone ought respect that. That appointment is subject to ratification by Parliament and that’s how we have agreed to govern ourselves. I find the comment disrespectful, the best they should have done is not to comment. But I also understand that these institutions are run by individuals who had got friends and I take not of what Mboweni said
Zambia should take a confidence building mission as soon as possible. But the dancing episode says volumes of our new money man.
Eleven months to go
What has IMF done for you ? Let them employ kalyalya if he is that good. The president was satisfied that someone’ else could do a better job. Kalyalya is not some God. If he was a God then we wouldn’t see the inflation levels he presided over. I am sure he will get a job with those same financial institutions.
What has IMF done for you ? Let them employ kalyalya if he is that good. The president was satisfied that someone’ else could do a better job. Kalyalya is not some God. If he was a God then we wouldn’t see the inflation levels he presided over. I am sure he will get a job with those same financial institutions. Kaizar
What has IMF done for you ? Let them employ kalyalya if he is that good. The president was satisfied that someone’ else could do a better job. Kalyalya is not some God. If he was a God then we wouldn’t see the inflation levels he presided over. I am sure he will get a job with those same financial institutions. Kaizar Zulu xx
Our PHD holder governor failed .He is qualified on paper but his performance was questionable.He was supposed to be fired when the kwacha depreciated from 12 to 19.Kwacha is worst performance currency in the world.
@Skylab-China’s central bank is heavily influenced by the central govt. but even in the face of covid-19, China has posted growth of 3.8% where France, USA, Germany, Japan etc have gone into recession. The key is having your own method of economic management not expired and failed prescriptions of the IMF. Denny Kalyalya presided over the slump of our currency and infaltion had ballooned-where is the success there???
The IMF will do well to keep out of the inconsequential Country specific personnel changes. It is about time that the IMF/World Bank addressed the current world economic order which allows rich nations to print money and not the ‘poor’ nations. How can the most indebted Countries be the richest? Every ‘rich’ Country has printed billions/trillions of dollars in order to support their economies. There has been no comment from the IMF and World Bank. Why? This is the debate we need to be having. Economists and Accountants from the ‘poor’ Countries need to up your game and smell the coffee!!!
The president has the constitutional right to hire and fire and in this case he did just that as he saw it fit. Dr Kalyalya maybe as qualified as he can be but things have degrade under his belt and it is not entirely his fault as the central bank of Zambia is too much a political institution that does not operate independently. Whatever the reasons the president had for firing the governor, only time will tell whether it was a mistake or indeed a good deed. We can only hope that the new governor performs better especially under the current circumstances. We should be hoping for the better instead. So those of you pouring out unpalatable words toward the former governor as well as the president, please calm down and relax!
Please let me hear a dull chap rant about sovereignty forgetting PF has been chasing after IMF since 2016
Country Men & Women!
What would you do if you wake up in the morning and be told your junior is your boss? You get frustrated and discouraged and this was the condition Dr. Denny Kalyalya found himself. He woke up and found Dr. Bwalya Ng’andu Minister of Finance. The work afterwards was do what it takes for the opposition to win if the economy fails and maybe appointed Minister of Finance. This unfortunately is my view.
Put things context. IMF was asked
By Zambian press to comment on the happenings at BOZ and they gave their view. Now here you want to make it sound like IMF on their accord just started ukusabaila.
If you ask me – I believe the President had good reasons to kick the man out. He may be qualified (academically speaking) but I think he lacked leadership qualities to mobilise the vast expertise at the bank to move the economy moving. Look at the inflation and exchange rate. These arw issues that matter for me a layperson. Zambians like degrees and people are paid more money for having gone to school and not because they can perform.
The mistake the President made was to put a PF cadre in that sensitive position. What could be the motive?
Poor country will never develop.How can you support such a bank governor with such pathetic performance in the world?This is why we say our education system is pathetic.Why praising somebody who has not performed even if he has a PHD?Please Mvunga can perform better coz he has worked in private sector.This man Kalyalya it’s bcoz of school and nothing records to show what he has changed.Those people supporting him are cadres from known party who wanted to destroy the economy so that Lungu loses elections.The kwacha will apreciate next month.
Poor country will never develop.How can you support such a bank governor with such pathetic performance in the world?This is why we say our education system is pathetic.Why praising somebody who has not performed even if he has a PHD?Please Mvunga can perform better coz he has worked in private sector.This man Kalyalya it’s bcoz of school and nothing records to show what he has changed.Those people supporting him are cadres from known party who wanted to destroy the economy so that Lungu loses elections.The kwacha will apreciate next month.—-
A country has the right to make its own choices…fire and hire who you want. IMF just wants u to take up that package which will put constraints on what govt can and can not do and ensure no subsidies in anyway to the poor…then u have to repay that ugly imf package with high interest rates which will put this country in more of a fix. moreover this imf package will call for hiring of consultants to assess xyz and guess what, like all other international organisation projects/experiments/programs, they will tell u to hire international consultants because “they know better” about our country than ourselves and ps, you will be paying those consultants from the imf package that u have to repay….IMF IS NOT YOUR FRIEND, CHINESE ARE NOT YOUR FRIEND. We are alone in this. DO NOT TAKE THE…
Zambia is the begging cindrella of the third world, you have zero credibility whatsoever! Last time you tried doing this barking like a rabid dog, you were made the leg it hard back home with your tails tacked clean over your smelly backsides. If you think having the likes of Lungu . Kainyokolola, Dora or Prof. of Tribalism Nkandyu Lunyo helps, you will soon onlky have thyself do blame.
Tarino sovereignty… now go hang yourself
By Xmas Kwacha will hit K25 to a dollar…this silly UK based impostor will be dancing away with Pound Sterling in his pocket in his UK council flat whilst dumb chaps like Zambian Citizen are foaming from the mouth with hunger back home…Zimbabwe is typical example.
So, let me get this clear: where in the IMF statement is the “concern” raised?
No human being is good no not even one all are corrupt and fallen short of the glory God it is sin to call any human being to be good total deception .
In all honest when ideas seem not to work, just take the bold decision and move one. Our president has just done that and I respect him for that. I wish he could do the same to non performing politicians in his circle.
Tarino or gay Jay: at least I am not getting a fat white d!ck up my arse in a foreign country like you because hunger is for lazy people who don’t want to work but blame the GRZ for their failures.
It’s not just a matter of stating that ECL has powers to do this or that… those powers should be clipped. Two many ‘Constitutional’ appointments that render vital institutions not to be independent or efficient. Politicians always meddling for their own political aggrandizement and whim. Does anyone think for one moment that Mvunga will operate prudently?
Adviser, the IMF statement is in diplomatic-speak. It requires training to decipher it. For starters, look for POLITICS AND THE ENGLISH LANGUAGE by George Orwell published in 1944.