Economy

Kwacha Expected To Strengthen – FNB Zambia

FNB Zambia says the market anticipates some resilience from the kwacha as a result of the measures announced by Bank of Zambia last week.

FNB Zambia stated that although the BoZ didn’t, however, underline specifics on the measures it would take to address the volatility in the currency market, some resilience from the kwacha is expected.

“Late on Friday, the Bank of Zambia (BoZ) announced the following measures aimed at aiding economic activity; Opening credit lines to the tune of K10billion ($540million) in a Medium-Term Refinancing Facility (MTRF), Relaxation of Credit Provisioning Rules, Extension of Day1 impact of IFRS9, Fee Waivers and Higher E-Money Limits. In addition, BoZ also stated that it would review the interbank foreign exchange rules to address volatility in the currency market. BoZ didn’t however underline specifics on the measures it would take to address the volatility in the currency market,” FNB Zambia stated.

“As we start the new week, we await to see how the market will receive the measures set by BoZ. We could see some resilience from the kwacha, as market participants start to position themselves for a possible intervention from the Central Bank. Resistance is pegged at 19.250.”

During trading last week, the USD/kwacha continued on its weakening trend closing at K18.82 from an opening of K18.65.

“We saw volumes continue to dwindle as business activity slows down,” FNB stated.

Copyright © 2020 ZR.

28 Comments

  1. Godwin

    Share with us please

  2. Mwine masushi

    As long as we are in PF nothing good will come out no planning

  3. Joseph Malombe president

    I would advise the Government to go to the drawing table of the late president Mwanawasa and churck how that administration used to tickle the challenge. People most of the time say,we have most educated people to drive the economy but I don’t see them maybe it’s the fort of the government who don’t invite them.most mind you one finance minister can not drive the government economy it needs teqnocrats and economists from both private sectors and government wings.consultant is cardinal than self dependant.

    • Real facts

      Levy benefited from HIPC, our credit out look was better after 2003,there is nothing good that he did.

      • Real facts

        Tunis, 6 July 2005 –The Boards of Directors of the African Development Bank (AfDB) and the African Development Fund (ADF) today agreed that Zambia had effectively met the conditions and reached the completion point under the enhanced framework of the Heavily Indebted Poor Countries (HIPC) Initiative.

        The Bank Group will, as a result, provide irrevocable debt relief of US$ 224 million in nominal terms. Zambia will be released from up to 80 percent of annual debt service to the Bank Group until the entire amount is delivered in July 2025.

        In reaching their decision, the Boards recognized the fact that Zambia had satisfactorily implemented reforms agreed to when the country reached the decision point in December 2000. In line with the enhanced HIPC framework arrangements, Zambia had to fulfill the following conditions to reach completion point:

        – Successful implementation of a complete Poverty Reduction Strategy Paper (PRSP);

        – Maintenance of macroeconomic stability;

        – Progress in meeting specific social sector targets;

        – Satisfactory implementation of key structural reforms;

        – Satisfactory implementation of two public expenditure management processes.

        The Boards agreed that Zambia has met most of the 15 specific structural and quantitative triggers that were set at the decision point to monitor Zambia’s progress in meeting the completion point conditions under the enhanced HIPC framework. The three conditions which were not met include: the review and implementation of the piloting of an integrated financial management and information system; the restructuring of the international bidding in the privatization of the Zambia Electricity Supply Company (ZESCO); the process of privatization of the Zambia National Commercial Bank (ZNCB).

        During the last three years (2002-2004), generally, the Zambian economy has improved as demonstrated by continued positive real GDP growth from 3.3 percent in 2002 to 5.0 percent in 2004, and reduction of inflation from 26.7 percent in 2002 to 17.5 percent in 2004. Government also facilitated private sector investment during that period, especially in the mining, agricultural, and tourism sectors.

        In the social sector, Zambia continues to struggle against a rampant HIV/AIDS epidemic and to implement satisfactorily the Education sector reform.

        Zambia is the 13th Regional Member Country of the Bank to reach completion point under the enhanced HIPC Initiative. Debt relief from the ADB Group to the country since December 2000 when it reached decision point – the first stage in the HIPC process – amounts to over US$ 61 million in nominal terms. Now start thinking about where things are now

  4. bronco

    kuwayawayafye pa friday yalafika k22.

  5. wardson siamaili

    We need to see practical amendments not paper work

  6. benon sichembe

    we are not suppose to blame the government they are trying,its just that our kwacha is being depreciated by the powers of the ruling country(?) its dollar.stop blaming the government.

  7. DROGBA

    A NORMAL PERSON CAN’T BLAME THE GOVERNMENT. AMERICA IS TRYING ALL MEAN PUT DOLLAR ON HIGH. VERY SOON WE ARE ABOUT TO START USING ONE CURRENCY. THE END IS AT HAND.

  8. Not true

    Wether you bring your so called president nothing will happen us who go to church we know were we are heading to

  9. Razor

    Dont be cheated. Kwacha is going to touch K20 mark very soon. We have clueless people running government who dont even have a clue as to where to start to arrest the slide of the kwacha.

  10. Tikambepo

    Our poor government will say because of Covid-19 our currency has lost its clout.Before 2021 the kwacha will trade at roughly k25 to k27.

    • Shimukokota Nsono

      We have gold at Kasensele in Mwinilunga and Vubwi in Eastern Province Let us mine it for the benefit of the nation. Don’t allow illegal miners and cadres to exploit this precious mineral much worthy than copper.

  11. Tikambepo

    If we’re waiting for the bell to sound and awaken us,it will never happen.
    Ubu buteko nabufilwafye.

    • Pharaoh

      If the son of God ,Jesus was a perfect loved one died over our sins, I don’t imagine a natural human being will be 100% perfect. Even though so called HH comes into power,still there shall be some who will be against his administration.It’s said that ,”A man shall never be satisfied cause we were made in the image of God’.Akanani kantukali pabwali.If a person is gone,that’s when we do some good things he did .

  12. Mpolompolo

    Remember everything which goes up must come down.by bullet

  13. Ephraim

    This is not something to politicis about as many countries in the world are trying to tuckle this issue, so whether you blame government it does not change anything as many are worried about the wellbeing vof people around the globe, so let’s insure that we work together in the fight against covid19

  14. Tikambepo

    “Ati akanani kantu Kali pabwali”nangula ni kolyokolyo mwebo kulya cabe,,,,,,,,,no wonder the Israelites ran away from your kingdom because of poor thinking,poor judgement and lack of foresight.

  15. Esau

    Ni 1day izakasira power dollar.

  16. Jms

    The cabinet is full of unreasoning members who don’t advise on good opinions but destroy. The vice president doesn’t work due to shyness of being rejected.

  17. SEER COVID-19

    HH NOW GOOD CHANCES TO TAKE OVER 2021. WE CAN’T SUFFERING LIKE THIS CURRENCY NO POWER, LOADSHELDING STILL GOES ON BUT IS FULL , ELECTRISTY TARIFF BILL IS HIGH . BA PF 2021 DAYS ARE RUNNING OUT JUST PREPARING TO PACK WHERE THIER’S COME FROM !

  18. SEER COVID-19

    HH NOW IS A GOOD CHANCES TO TAKE OVER 2021. WE CAN’T SUFFERING LIKE THIS CURRENCY NO POWER! LOADSHELDING STILL GOES ON BUT IS FULL , ELECTRISTY TARIFF BILL IS HIGH . BA PF 2021 DAYS ARE RUNNING OUT JUST PREPARING TO PACK WHERE THIER’S COME FROM !

  19. Kelvin Ngosa

    Business administration

  20. Jms

    God made man, Satan made woman to corrupt man’s money,now who is this man?. Tax payers,diners etc and the woman, we all know who the woman is,we can’t get lost to a thing clearly seen and felt. All commodities have gone up expecting Zambians to start begging with too much debts from foreigners in compounds. This case may result in the case of Joseph in the Bible whereby population Increase may lead to various occurring situation which never existed leading to bad dids. (One word is enough for a Wiseman ).

  21. Lovemore

    I think we need actual benefits and not grammar for us to appreciate the developmental approach.
    These Theories you pronounce do not add any value to us. We are hungry and poor. SOS please.
    The reason why we make references is because we were better then, than now.
    Understand us please.

  22. The Zinc

    It’s the same FNB which forecasted that kwacha will not go beyond 17.6 and today it’s dating 19. 1. Why should we believe it?

  23. Sipinya sa ng'aka

    Let’s hope the credit facility will not be politicised and end up like the city market saga!

  24. fakejew

    FNB is a manipulative, exploitative bank. It will get stronger so that people sell and these Shylock owned bank accumulate greenbacks to make hefty profit

    Pipo, what FNB says do just the opposite.

Comments are closed.