The Zambian Kwacha can now be insured because it is risky to use it, thanks to its instability. But the PF says this is a ‘milestone’, another side effect of having dunderheads and school leavers in key government positions.
Last Friday, the Johannesburg Stock Exchange (JSE) listed the Zambian Kwacha and two other African currencies as way of investors protecting their money if they venture to use the fluctuating Zambian Kwacha.
The listing of the Kwacha, together with the Kenyan Shilling and the Nigerian Naira, was launched at a ceremony held at the JSE in Johannesburg.
Zambia sent deputy High Commissioner to South Africa, Joe Kaunda to go and witness this insult.
Kaunda described the launch as a momentous occasion especially that it was happening barely three weeks before Zambia celebrates her Independence Golden Jubilee.
Kaunda says the development is a milestone and confirmed the confidence that the international markets had in Zambia’s economy and its leadership.
Lusaka Stock Exchange (LuSE) Chief Executive Mr. Brian Tembo, who was also in attendance, hailed JSE for the initiative and said that LuSE Is working on introducing such measures through collaboration with the South African stock exchange.
But a closer look at what this really means is that it is an insult to the Zambian money and Zambian leaders.
“The message is simply: hedge (protect) your foreign exchange risk on the JSE [in South Africa] and go and do your business [in risky Zambia, Nigeria or Kenya],” Andrew Gillespie, the head of Tradition Futures, at Barclays bank told Reuters.
“You have fire insurance, theft insurance, insurance against water damage. This is a place to buy FX insurance,” he added.
If you are still lost in all this, it means, a person (foreigner) who wants to do business in Zambia using the Zambian Kwacha can first go to South Africa to insure his money because the Zambian Kwacha is unreliable and can lose value at anytime. If a foreigner has a bank account in Zambia, they can insure their money in South Africa.
When that happens is it is bound to, the investor can go and claim Rands or Dollars in South and get the same amount he spent buying the useless Kwacha.