The Kwacha has continued losing value and is likely to go back to trading above K5, 300 per US Dollar, which is its real value under the PF regime.
By close of business on 18 October, 2012 (yesterday) the local currency was selling at K5,212 plus per one US Dollar, according to Bank of Zambia statistics.
There is no need to speculate what is causing the local currency to be valueless as reasons are very clear, lack of production in the country, poor policies, government policy inconsistencies etc…
From the time the PF took over governance in September 2011, the Kwacha has been losing value reaching a record high by July, 2012.
The PF tried to control the free fall using political measures. They banned foreign currency-based transactions and this had a momentary effect as the Kwacha gained about 10 points. But like industrial experts pointed out, that was just a political measure that would pass within two months.
The government is now relying on the disbursement of the $750 million it borrowed through a Eurobond to strengthen the Kwacha. It remains to be seen how that borrowed money will strengthen the local currency and for how lone.