As was predicted, barely a few days after posting some huge gains, the Zambian Kwacha today started losing value again against major convertible currency by buying at K6.0550 and selling at K6.1300
Shortly after the revocation of the useless SI 33 and SI 55 that imposed monetory regulations by Finance Minister Alexander Chikwanda on Friday the dollar opened buying at 6.1200 and selling at 6.2415 bank rates.
As the day progressed, the Kwacha gained about three times closing at buying K5.8685 and selling at K5.9850.
However, today bank rates opened at buying at K5.9370 and selling at K6.0550.
But these rates have just been revised to now buying at K6.0105 and selling at K6.1300 and bank insiders predict it is likely to continue losing value due to economic and political instability under the PF government.
The situation is worsened by the lack of investor confidence in the PF government and so no new money is coming in the country plus a huge drop in exports especially in none traditional products other than copper.
“What we suspect now is printing more money, a situation that is likely to fuel inflation and eventually cause commodity shortages,” sources said.
Already Zambian Brewaries that was injecting lots of money yesterday announced an increase in beer prices and a reduction in tax remittances to government.