Economy

Kwacha Makes Dramatic Turnaround

The kwacha has made a dramatic turnaround on the foreign exchange market, closing yesterday trading at K13 against the United States dollar.

Market expert expect a much stronger kwacha today, with trades forecast at around K12.95 per dollar.

This appreciation comes at a backdrop of massive depreciation a few days ago that saw the kwacha trading at K14.40 per US dollar on inter-back.

“It was yet another difficult day for trading with the market falling on account of lack of demand. Thursday’s trading session opened at  13.40 and closed at 13.00. As the rate continued to fall, dollar buyers opted to wait for even lower rates,” FNB Zambia’s daily market update has stated. “On the other side, dollar sellers are desperately trying to get kwacha, dealing at any available bids. This scenario has caused exaggerated moves, making it difficult for firm pricing discovery. Our current view stands for a bullish kwacha. We could see trades below 12.95 today.”

40 Comments

  1. Kababa

    Yayayaya kafwafwa

  2. Hev rena

    People are increasing prices everywhere due to this dollar fluctuations. Even those that do not need forex including kandolo ,ubowa and prostitutes.But Ana salaries ni minimum wage everywhere..

    • Caspian

      traders are abusing the customers,increasing the prices of the merchandise in reference to dolar

  3. Ibrahim

    Utesi usuma ukuloizya

  4. Mulilo kafyama

    Life has become very difficult to everyone because of the dollar.

    • Just asking

      Because of dollar, or because of the Government criminal incompetence?

  5. Múller Miller

    This pipo are behind, they are out of ideas but the greatest copy-cut of other pipos living…..
    #Mwatu_chushishamoo #baMuNtU

  6. DEEP THROAT

    Sometimes I don’t understand why in Zambia we have become slow thinkers. We are like reactionaries!
    Our major trading partners are the Chinese and they use Yuan.
    Why don’t we simply ALIGN THE KWACHA TO THE YUAN, say K1.50 to ¥1. We can avoid all these uncertainties which makes planning unpredictable. How can a new company plan in such uncertain business environment.
    Decision makers must be quick in thinking and not talking!

    • Acm

      That is a very lame idea.
      don’t even waste your time thinking about that.

    • lord

      not so bad an idea

    • Realist

      @Deep Throat.

      You’re right and smart to think in those lanes. Actually your comment is the only sensible one and the only worth noting on this topic.
      no offense to the others

    • Bonkinalo

      Mmm.. I dont think it’s as simple as u might think lad!

    • Kanyata Mubita

      There is an almost unending fight between the USA and China over the over valued Yuan. Strong Yuan would hurt our industries which export. For example if we export copper to China, the amount of Kwacha realised from export earnings would plummet to such an extent that these firms would fail to meet their local expenses and costs which are in Kwacha. That would result in retrenchments and loss of revenues by the treasury. So this is much more complex than waving magic wand.

  7. Doubt Katwishi

    Deep Throat. Zambians may be slow thinkers, one thing for sure they are not as ignorant as you sound when it comes to economics. I would advise you do research on how an economy is run. Otherwise you won’t be able to offer constructive critism.

  8. James Songe

    Greatness indeed

  9. Soccer lovers

    Now is that a TURNAROUND and quickly post on social media as if it is a single digite nomber.visit yo nearest markets 10kg backet of salad is at K190.

  10. Nzelu

    It is important to think before writing anything. If not sure of the issue at hand keep quiet.
    The US dollar is currently the major currency by which all world currencies are pegged; the Zambian kwacha inclusive.
    What we need is a strong stable kwacha which will make planning easier.
    Thus, any effort to stabilize the kwacha is very much welcome.

  11. Bruno mars the moonshine jungle master

    Koma mu zambia awwe mwaandin

  12. Remdee

    we are really suffering because of this dollar mwandi,I wonder if things are going to be normal again.

  13. Pale

    We are not suffering because of the Dollar! It our governance! Nangu pashilesoswa!

  14. Hillary Zulu

    financial markets fluctuate all the time because they are driven more by human behavior(investor psychology). I knew the kwacha was going to make a turn around i don’t know why some of you people are shocked, the macro and micro economic fundamentals are still the same

  15. DEEP THROAT

    Our Kwacha is either aligned to a basket of currencies, or the US Dollar, or floating. Which ever way many business men are complaining
    Some are blaming others. A few of us are trying to offer options.
    The American Dollar is the most used currency in the world, but it is not the most stable. It may in fact be the most battered.
    President Trump is complaining that he will now punish those countries who are manipulating their currencies against the Dollar.
    What really is he saying?
    Well, he levied 10% and later 20% taxes on Chinese imports. The Chinese devalued the Yuan which made the 20% cheaper. Did this make the US Dollar really strong in REAL TERMS? No. Definitely not.
    Come on, may be we try to back to PENZANOMICS! Otherwise, the Kwacha needs support. No doubt our largest trading partner as of now is China. Why align ourselves to the Dollar? I’m talking economics not politics.

    • Mwandi

      Comment Even if your thinking is correct in many ways, very few will see sense in it.
      The reason. is simple, when the kwacha is not doing well, it is to some people’s advantage.
      The fact that their accounts are in US dollars and not in Yuan, they can’t see sense or support your thinking bcoz they are beneficiaries.
      That is if one $1000 in the bank is @ K12 one’s account in Kwacha is K12,000. When the kwacha looses strength to K14, one’s account automatically is K14, 000. This is true about the rates.
      The only people that are hit, are traders and consumers.
      Now compare the Y1.5 against K13 per dollar? Those with US dollars in the bank or are trading in US dollars as business, will definitely see no sense in a bright opinion.
      Let’s face facts, goods in Zambia are bought or sold using Kwacha, but a bright thinker had to abolish the pegging or charging of goods in US dollars, coupled with rebased Kwacha we had our currency turning around and was the most valuable currency in Southern Africa, beating the powerful Pula.
      Here it’s the passion for our country, believe me or not nations whose citizens are passionate about their sovereignty, have their currencies intact.
      Yes fluctuations are normal in any given economy, but ours is beyond understanding.
      Well everything has time, and time isn’t our friend , but belongs to God.

  16. Justine c. Mukungule

    Fluctuations in the performance of any economy are a normal trend not only for Zambia but all world currencies, the dollar inclusive. Economic forces determine the strength of any given currency.Factors like demand and supply are a fundamental determinants of economic behaviour.Let us not be startled beyond measure when our currency tumble in value.Prudent management of the economy and high productivity is key.

  17. Yc Bankz

    this is awesome pliz igweletu ifikeko pa K10 sure and will definitely give em votes

  18. Emmanuel Kasanda

    Nikafwafwa sure
    Nikwi tulelola

  19. Stead

    Better you remain quiet to something you don’t understand.The most selling note on the world market and influential.If you choose other notes anyhow you’ll remain alone.

  20. Ancient

    The currency can only be strong if the country is industralised and you cut on importation of goods, increasing on exportation. You are busy importing matches and you expecting stable appreciation of your currency.

  21. kabinyu

    Y zambians using dollars instead of our kwacha? If we bun dat dollars & continue uzng our own kwacha we cnt even complain

  22. SEE MIND

    Late Mwanawasa was left kwacha K3.50. Banda was left K6.50. Late Sata 7.50 . Lungu now worsening K14.00 where going with economy? BA PRESIDENT YOU FAILED TO RULRS ! COST OF LIVING IS TOO HIGH BECAUSE OF KWACHA NO POWER. BE CAREFULL 2021 I DONT KNOW !!!

  23. Man Chile

    Bakateeka tulolesheniko twapaapata ubwikalo apa nomba bwakosa.

  24. Bucket of salad? as in vegetables or cooking oil? Salad is sold by volume not weight boss.

    Bucket of salad? as in vegetable or cooking oil? Salad is sold by volume not weight boss. So which one you dey now? Abeg comot jari!

  25. Lazarus Sambaza

    Mamama! awe pabipa.

  26. CF

    Just following

  27. Samuel Nyundu

    Minister of finance. Please do something about this matter. The so called economists, what is your analysis over this monster called dollar

  28. wilbroad Bupe

    I thought prostitutes need forex. Are they not cross border traders too? Zim- Zam. Nam- Zam. Drc-Zam. Etc.

  29. mwata

    what Mr mwandi has said is true those who have money in dollars are celebrating shame to us who live on below a dollar a day to survive The only way to balance this equation between those on top and us on the bottom is ask our listening government to control some of these exaggerated prices like millmeal prices which do not require USA dollar or we change the head of a train if it is malfunctioning

  30. Songwe

    So, what’s the way forward or what can we do has zambian

  31. Ba eazy

    Songwe my dear don’t worry 2020 is coming we will see who is clever between the government and the people

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