Kwacha awakens

THE Kwacha has made tremendous gains from its lowest of K14 to K11.4 by yesterday following interventions by the Central Bank.

The gain of the Kwacha comes barely 24 hours after President Edgar Lungu announced that Government had no intention of reverting to foreign exchange controls and that the depreciation of the Kwacha was largely due to speculation rather than the true economic fundamentals currently obtaining.

Currencies like the South African rand, kenyan shilling and other currencies have suffered depreciation because of a China factor, commodity factors and US global appreciation of its currency but the depreciation has only been to extents of 15-29%.

For Zambia, however, the depreciation was running to almost 100 percent and the scenario was largely attributable to speculation than the stated international factors.

The buoyancy of the Kwacha caught many including speculators by surprise who did not see a recovery anytime soon and many are sauntering to the banks and bureaus to sell back their dollar.

The kwacha was yesterday the hottest commodity with certain bureaus running out of the currency.

Categorized | Business

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