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What are these thieves up to now?

PostPosted: 25th March 2014, 22:16
by Civil servant
Dear Zambia,

Zambia lifts forex restrictions to ease pressure on kwacha
March 22, 2014 4:12 AM

By Chris Mfula

LUSAKA (Reuters) - Zambia on Friday lifted a ban on the use of dollars for domestic transactions as authorities sought to ease pressure on the kwacha.

Finance Minister Alexander Chikwanda said the Bank of Zambia was revoking 2012 and 2013 regulations that required domestic transactions to be quoted and paid for in kwacha and gave the central bank authority to monitor foreign currency transactions.

The decision was welcomed by the World Bank and the local business community, including the Chamber of Mines. Zambia is Africa's leading copper producer.

The kwacha has lost more than 13 percent against the dollar so far this year because of lower prices for the country's copper and tight supplies of the dollar.

Chikwanda said the central bank would not deplete its reserves through interventions to bolster the currency.

"The weakening in the kwacha parity is temporary and the government will not be tempted into taking interventions that may deplete our reserves," he said.

The kwacha firmed after Chikwanda's announcement, trading at 6.15 to the dollar at 1257 GMT. That was more than two percent above Thursday's close. The kwacha reached a record low of 6.42 on Wednesday.

Razia Khan, head of Africa research at Standard Chartered, said that with the lifting of the regulations, "the authorities have reversed policies that were widely criticised for adding to pressure on the exchange rate."

This week, the central bank tightened policy further, restricting commercial banks' access to its overnight lending facility to once a week and increasing the OLF rate by 350 basis points.

DEPRECIATION OVERDONE?

Khan said she expected the tightening to bolster the currency in the short term.

"Despite concerns over Zambia's fundamentals and the outlook for copper, its key export commodity, the depreciation looks overdone," she wrote in a note. "We now expect a pullback in dollar-kwacha to levels closer to 6.00 as the latest tightening measures take effect. Longer-term, a more gradual depreciation path is likely."

Kundhavi Kadiresan, the World Bank's country director for Zambia, said the government's move would enhance public confidence in policy-making.

"The Zambian economy had recently gotten into a difficult situation with a large budget overrun in 2013 and increasing uncertainty about economic policies and direction," he said in a statement. "This difficult situation is partly reflected in the rapid depreciation of the kwacha and accompanying sense of panic in the markets."

Chamber of Mines president Emmanuel Mutati welcomed the government's willingness "to continue consultations with the private sector to develop a regulatory environment that is supportive of government's agenda and conducive to increased foreign direct investment."

Chikwanda said that Zambia's debt is within sustainable levels. External debt stood at $3.2 billion at the end of 2013, representing 15 percent of GDP.

"The government is mindful of the need to safeguard debt sustainability," he said. "Current levels of domestic and international debt are within sustainable levels."

Fitch affirmed Zambia's credit rating at B on Thursday, saying Zambia's economic performance was strong. It forecast GDP growth of 7.2 percent in 2014 but warned about the government's expansionary fiscal policy.

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 07:34
by mr zambia
Its not about thieves its called stabilizing the economy,civil servant you piece of sh**t!

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 07:42
by Tabasco
ka Zambia mudala I should light a torch and stick it up your anus for saying that. I really should. You son of a bitch.

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 08:30
by mr zambia
Tobbaco ah sorry tobasco its really the truth,most governments would do so to stabilize the country and we the public should work hand in hand with the state to better zambia for our grandchildren

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 12:30
by Slumdog shalapungu
Ba PF first they tune ati we will stop the dollar trading and now the kwacha starts to fall and now its dollar bwela kuno. I think we africans need to have a concerted effort to drop the dollar and pick one currency that has strength and not susceptible to western influence and stick to it. Ba zezulu ku zimbabwe are now using the Yuan to stop the muzungus tampering with them and from what I hear and read some zimbos are looking into permanently adopting the Yuan. In all Honesty whatever currency we have so long as the west can target us via external pressure we will always be under them. We need something like the Bitcoin or we need to adopt chocholi money or russian money because this obsession with the dollar is like obsession with a gun aimed at your head

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 17:36
by Codename
The logic of a true monķey. Excited to replace a european master with a chinese master. The thought of being one’s own master does not even cross his monķey brain.

Re: What are these thieves up to now?

PostPosted: 26th March 2014, 18:20
by Guest
Codename

Spot on!

Re: What are these thieves up to now?

PostPosted: 27th March 2014, 06:11
by mr zambia
Slumbitch your tale has caught and cutted

Re: What are these thieves up to now?

PostPosted: 27th March 2014, 18:04
by Behind the scenes expert
mr zambia, it's obvious to anyone who has been here @ DZ for the last few months that you and slumdog are lovers. Why don't you just give up this charade of a public squabble?