While President Edgar Lungu was aimlessly giving jobs to party cadres thereby adding to the public bill, the Kwacha was getting worse and worse. Lungu does not even seem to care as he does not mention the economy or currency in his public appearances.
The kwacha was down more than 4 pct to 13.85 by 15 hours local time. One British Pounds is now almost K21.
Last month, Finance Minister Alexander Chikwanda said he planned to nearly halve the budget deficit in 2016, but added that the economy would face continued external challenges including weak commodity.
This simply means that the cost of living will continue going up since the majority of inputs and essential goods are imported in Zambia, said an official in one of the commercial banks
‘With this continued fall of the PF Kwacha, Zambians should not be surprised to see the ERB increasing the prices of fuel. What is actually holding the increments are the “futures contracts”, which ERB had entered into with suppliers of fuel to supply a certain quantity of fuel over a certain period of time [which should be expiring any time soon] on an agreed fixed exchange rate.
‘Indeed these are rough times for Zambia,’ the official said.