The kwacha has posted some gains a few hours after finance minister Alexander Chikwanda revoked his useless Statutory Instruments number 55 and 33.
One Dollar which was in the morning selling at K6.45 was by close of business on Friday selling at K6.1 on the Interbank Foreign exchange. The British Pound was by close of business selling at K10.3 having sharply fallen from K10. 6 in the morning.
Against heavy opposition and sound advice from people who understand modern economics, Chikwanda and his nephew ailing dictator Michael Sata last year signed SI 55 on balance of payments which empowered the Bank of Zambia to monitor international transactions while SI 33 prohibited using foreign currency for domestic transactions.
Chikwanda and his nephew accused everybody including the USA of causing the loss in the value of the Kwacha and lied that they had injected millions of Dollars to stabilise the currency which last week was given the dirty award of being the worst performer in the world.
But most educated people in Zambia and international economic experts have always said that the problem is the bad, dictatorial policies and laws of the PF regime.
And for sure the moment Chikwanda removed these useless laws, the Kwacha has began to recover.
But instead of admitting his poor understanding of modern economics, chikwanda still tried to blame other, unknown forces. He foolishly said Zambia’s foreign exchange market was an imperfect market controlled by a cartel that was influencing the recent kwacha depreciation against major convertibles.