While president Edgar Lungu’s spokesperson Amos Chanda is insulting Zambians, telling them that they do not understands economics, the local currency has tumbled, once more – this time even deeper.
By midday on Wednesday September 23, 2015, the Kwacha had dropped to K10.44 per USA Dollar on the Bank of Zambia Interbank rates. In Commercial banks, the Kwacha is gong at K10.50 while in Bureaux; one Dollar gets more than K10.60.
On September 4, the PF government diverted US$120 million of the Eurobond money into the market in an effort to ‘save’ the kwacha from further collapse.
This was after the Kwacha was losing value at scaring rates and hit the rock bottom of K10 per USD, something that has never happened in the history of Zambia.
After diverting the Eurobond, the Kwacha stopped losing value temporarily but now with the Eurobond money consumed and finished, the Kwacha has started its journey to the bottom.
Most people outside PF have questioned and pointed out Lungu’s incapacity as exhibited by his failure to outline any measures to save the Kwacha in his addrees to parliament. But his spokesperson Amos Chanda, said such people should go and study economics
“The President’s critics over the speech, they wanted him to say the word ‘kwacha’ and then they know that he has addressed the issue of the kwacha. The fundamental problems that trouble the kwacha are issues of lack of diversification. If you do not diversify the economy away from the copper, then you have a limited space for exports, so the President addressed broadly and very comprehensively on diversification. Therefore, he is going to bring about an economy that exports and when you export, then you earn the sufficient dollar liquidity that is required in the market to cool off the market and reduce pressure on the kwacha and therefore the dollar-kwacha equilibrium will be somewhere where it will be acceptable,” Chanda said. “So critics can go and read economics again. When this economy is expanded in the manner the President proposed, then you will see that he has addressed the fundamentals that come to trouble the kwacha. We still see that that speech did touch on issues that are currently affecting the kwacha.”