Zambia resorts to printing money to pay civil servants

Zambia resorts to printing money to pay civil servants

 

The PF government has so far printed K23 billion in order to finance the wage bill and pay some Chinese contractors.

Ministry of Finance and Bank of Zambia sources tell ZWD that President Edgar Lungu and Finance Minister Margaret Mwanakatwe authorized the printing money like the UNIP regime of Kenneth Kaunda in the 1980s that finally led to the total economic collapse.

But some advisors told Mwanakatwe that the move would trigger a hyper inflation and completely collapse the economy like what happened to Zimbabwe, Greece, and recently Venezuela.

Already the PF administration has not been releasing the monthly Central Statistics economic data for months now.

PF found themselves in a tight corner after a delegation from China EXIM Bank that is in the country made it clear that the continued failure to pay the Chinese contractors who financed road projects will result into an immediate recall of all China EXIM Bank financed loans.

This message sent shivers in PF and President Lungu authorised the immediate printing of the Kwacha.

The printing was disguised as replacement of worn out currency notes.

The demand for the dollar is increasing as these contractors are converting the Kwacha to transfer their partial payment into their foreign accounts abroad. The Kwacha is expected to depreciate further in the next few weeks.

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