Economy

Central Bank Promises To Take Charge Of Kwacha

The Central Bank has said it will use all available interventions to stabilize the foreign exchange market which has seen the kwacha depreciating to nearly K20 against the US dollar.
In a statement issued today, the Bank of Zambia revealed that the local currency depreciated by 8.0 percent between August and September 14, 2020.

“In the recent weeks, the Kwacha has come under renewed pressure. Between mid August and September 14, 2020, the kwacha depreciated by 8.0 percent to K19.81 per US dollars from K18.34, largely reflecting imbalances in the foreign exchange market. On the supply side, lower foreign exchange sales have been noted from the mining sector as well as foreign financial firms who typically invest in government securities. The reduced mining sector supply although pronounced during this period, is consistent with to gradual reduction in exports in general,” the BOZ stated. “As has been indicated in the previous Monetary Policy Committee statements, the exchange rate has been an important impact on inflation outcomes. Allowing volatility in the exchange rate, whilst allowing it to adjust to market conditions, is therefore, a critical ingredient in achieving and maintaining price and financial system stability. The Bank of Zambia will continue to use all available Monetary and foreign exchange interventions options, as appropriate, to address adverse developments in the foreign exchange market. On demand side, there has been a significant increase in foreign exchange requirements for the importation of agricultural inputs, health related supplies required to address Covid19 pandemic and procurement of petroleum products.”
BoZ states that it has been able to provide foreign exchange liquidity back into the market.
“In August and September, the Bank of Zambia has been able to provide foreign exchange liquidity back into the market to help meet the current significant increase in demand amidst reduced supply,” the BoZ stated.

17 Comments

  1. Razor

    There is nothing that BOZ can do if the government does not put in place measures to bring back confidence in the kwacha. Unfortunately this government has no will nor knowledge to do that so only a change in government will bring true stability. All other measures will be temporary.

    • You Have Failed Us

      I think by now people are aware that promises are a thing of the past. Don’t give us useless hope by promising. You’ve failed and you will only make it worse if we don’t remove u from power. A promise is never guaranteed or assured, we don’t need that anymore. What we want is for another government to come in and make a difference.

  2. Jk

    It’s to late ba BOZ

  3. Zedpeople

    The major means could be in the short term to call upon the Open Market Operation, while at the same time promoting activities which leads to positive sentiments such as stopping political violence.

  4. St. Luciferus

    Patch ups. Likely next BOZ governor is the same Chipimo. The real slide is due to the fact that monetary policy is being used to patch up inefficiencies and largese in fiscal policy.

  5. WolvesPounce

    These are fake stories look at how the staple food has gone up the highest note che is reduced to rubbish now, economy is in limbo we gave you a chance now it’s time to go now.

  6. Bufi

    Actions speak louder than words

  7. WAIT

    I think the best way is to start using both kwacha and dollar

  8. CTC

    So would a upnd GRZ translate into a lower exchange rate and the economy magically improving overnight???

  9. Ze bossele

    K20 is just too much, both boz and gvment have failed us!!!

  10. Indoshi Palupe

    Let’s just sell this country to China!

  11. Chipampe Damson

    Boz and the government ensure the statement given by ‘bufi’ which says “Actions speak louder than words”. We need u more, just change worse things to better ones.Thank u

  12. Kkk

    Good move but its too late and more over before you do that start kindly by removing slot machines on the street in short bonanza it has a huge impact to our economy as well coz its like we are now investors insisted of them.

  13. Gift~Chatman~Chate

    Not until we remove this current government next year, but if we fail, the Kwacha shall slid to 50 or 60 for 1 USD.

  14. mukuka

    Hw can it be everything. in our contrey Zambia has became unstable, where ar we going with thes govermet.

  15. Shab

    Ukakangiwa nishi wakangiwa

  16. King

    Zambian..there is nothing 4 us without us..i think a change(govt) can be a solution to our problems

Comments are closed.