Kwacha will remain worthless for a long time

Kwacha will remain worthless for a long time

** Some people had thought Bwalya Ng’andu would be a better minister than Margaret Mwanakatwe but he has proved to be the biggest headless chicken ever

By logic Lukwanda & Micheal Kaluba

Financial analysts mambo Hamaundu says it will be very difficult for the kwacha to rebound against major convertible currencies because it is affected by many factors.

Mr Hamaundu tells phoenix news that the local currency has been negatively hampered by the outbreak of the covid 19, debt servicing and generally low liquidity levels in the economy due to subdued economic activities.

And Mr Hamaundu says there is seemingly nothing much that can be done in the short to medium term to have the kwacha strengthened and stable.

The kwacha is trading at 17. 56 Ngwee against one United States dollar.
Meanwhile, Mr. Hamaundu has attributed the continued failure by government to pay salaries to various local authorities and provide funding for state projects among other challenges to failure by the regime to marry pronouncements with consistent action.

This follows none payment of salaries of council, university and college lecturers among others and failure to pay retirees.

Mr. Hamaundu explains that technocrats already foresaw Zambia’s current challenges which caused the fiscal deficit to widen as the country’s leadership continued to show appetite for expenses.

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