The ruling PF has now blamed the worthless Kwacha to the importation of campaign materials by various political parties
As if this is the first time Zambia is having elections, the PF is now claiming the Zambian Kwacha has suffered from sustained pressure from political parties procuring campaign materials.
Ordinarily the Kwacha should actually be gaining ground owing to the reduction on the world oil prices, but PF’s economics seems to work the reverse way.
Even without elections, the Kwacha last year was the worst performing currency in the world and the PF them blamed speculators.
Both PF officials from Ministry of Finance and Bank of Zambia have confirmed that the recent huge imports of paraphernalia by political parties have exerted pressure on the kwacha.
But one thing PF wont admit is the serious lack of investor confidence in the economy due to policies such as recent mine taxation policies where some companies have withheld or pulling out of the country.
Political parties have been printing t-shirts, Fitenges, posters and banners from South Africa, India and China from political parties and the pressure has shown by the slide in the kwacha which has fallen from K6.1 to K6.5.
Also anxieties regarding the forthcoming elections could also be responsible for putting pressure on the Kwacha.
The fall is also attributed to forex for oil and fuel procurements being done on the open market.
The period also brings about speculators who wish to cash in because of the anxieties.