Bank of Zambia Governor Micheal Gondwe was either misquoted or misled the public yesterday when he implied that the Central Bank has offloaded US$178 million to stabilise the free falling and now worthless Kwacha exchange rates against other currencies.
And the PF government will soon increase the fuel prices due to the free falling Kwacha.
Sources from within Ministry of Finance have now corrected the impression and have said the truth is that this is the money they have offloaded over a period of time starting from second week of January this year on an accumulative basis.
This means there will be no change at all on the markets as that money has already been released, but without any success in stabilising the falling Kwacha.
Ministry of Finance officials have revealed that Mr. Michael Sata’s government will soon again increase the fuel prices due to the falling Kwacha.
Sources said the Zambian government is currently spending huge amounts of money in fuel procurements because of the falling Kwacha.
“As you know, the fuel prices are pegged in dollars, and when the Kwacha weakens as is the case, automatically there has to be an upward adjustment as government cannot afford to subsidise fuel imports due to the weakened Kwacha. They were just waiting for Katuba by-elections which they thought they would win,” sources have revealed.