Nominal appreciation of the Kwacha

Nominal appreciation of the Kwacha

Appreciating of Kwacha (k)
in the past 4 days, an observation has been made on the performance of the Zambian currency. few days ago the Kwacha was trading at K22.9 to $1. As the situation stands $1 is equal to K20.7. The most prevailing question in the minds of many is that, what has really caused the Kwacha (k) to gain in a short period of time?
To answer the question, many theories have drawn from different stakeholders including the Economic Association of Zambia (EAZ) lead by Dr. Lubinda Habaazoka and the Patriotic front (PF).
With regards to the PF reasoning, the gain has been due to the goals set out in the Economic recovery plan and the opinion poll that predicts President Lungu winning with 60% lead in the forthcoming election by the Consortium of Zambian Thought Leaders from various academic institutions across Zambia and abroad. Therefore, this has created confidence in the investors to invest in the Zambian Economy.
If this is true to the pf point of reasoning, we therefore ask that why has it taken for the Consortium of Zambian Thought Leaders and other predictors announcement for the Kwacha to gain? all this time the incumbent pf president was in power, bushe ba investor didn’t know that president Edger lungu was in power since 2015? Who was ruling us?
Anyway alebwelapo songs, continuity of development, humble leader, tribalism talks are not enough reasons to convince a well reasoning person to vote for you. Pull up the socks, Bola naikosa you still have chance.
With the above reasoning, we can therefore speculate the reasons behind the gain. This might include among our speculation that the Bank of Zambia (BOZ) is on the ground active releasing Dollars into the financial markets in order to facilitate the gain of Kwacha. This solution has worked before but history tells us that its only for the short period of time, its only artificial.
Kelly Lumbala
A Registered Voter

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