Under Edgar Lungu, the kwacha has no set value but fluctuates up and down like a plane passing though heavy turbulences.
Last week the Kwacha ‘appreciated’ from K11. 30 per US Dollar to K9.4 per US Dollar in most commercial Banks.
But today (Monday), the Kwacha dropped to K10.50 per US Dollar. At the Bank of Zambia, the Kwacha opened trading at K10.09 per USD, by 12 hours, one Dollar was fetching K10.25 and by close of business, one Dollar was going for K10.30 at Central Bank rates.
The situation was worse in commercial banks and bureaux de change. At Access Bank the Kwacha closed business trading at K10: 53 per Dollar, while in Barclays Bank One Dollar was going at K10: 50 while at Bank of China (Zambia) one Dollar was going for K10: 45 by close of business.
In most bureaux de change, one US Dollar was selling above K10:70.
Meanwhile, financial experts at the Bank of Zambia say whatever artificial measures the PF implements to force the Kwacha to gain won’t work because the fundamentals are just wrong. One expert says the market has just rejected Edgar Lungu and his regime and all efforts such as pumping in billions of US Dollars is just a waste of national resources and distorts the markets further. Bank of Zambia experts say there is enough evidence to arrest Edgar Lungu, Finance Minister Alexander Chikwanda and other key PF leaders for economic sabotage.
Another Bank of Zambia official predicted that if Hakainde Hichilema is elected president, the Kwacha will strengthen to K6 per US Dollar within a week. The financial expert says, on the contrary, if Lungu will be re-elected, the Kwacha will be ‘scared’ and retreat to more than K15 per USD. The Financial expert said the Zambian Financial Market already know who Hakainde Hichilema as he has been a key industry player and has huge confidence in him such that the mere hint of him being president is enough to strengthen the Kwacha. The BoZ official said financial markets react to national and industry leaders positively and negatively depending on how they view the new leader.