Just like we predicted yesterday, the Kwacha has fallen to over K13, 000 (K13 PF money) to just a single Dollar.
One Dollar is this Tuesday morning fetching K13, 270 (k13.20 pf) while the Pound has soured back to more than K20, 000. The Euro has also gone back to trading at more than K14, 000 (k14 PF money).
What all this means is that prices of good and services will continue to rise, companies that depend on importing raw material and even finished goods will continue shutting down and Zambians will continue losing jobs.
Last week, the Kwacha made some artificial gains after State House ordered the Bank of Zambia to release Dollars from Eurobonds and other loans to strengthen the Kwacha. The Kwacha had by Friday strengthened to trade at K11, 800 per Dollar but the Watchdog correctly observed and warned that the two days appreciation was fake and artificial as it was not backed by production. The Watchdog warned that after the fake appreciation; the Kwacha would fall even harder.
Economist Noel Nkhoma also explained that the step taken by the Bank of Zambia was not sustainable.
When the Kwacha made some artificial gains, it was the main news on ZNBC and Times of PF and the Daily PF also ran screaming headlines such as ‘Kwacha continues bullying Dollar’.
But now it’s no longer news.