By Sims Simataa

EXCHANGE RATE
Since K1 became 5 cents I have not read a better post that one on “Bulozi London”.

This is the best solution towards the solution I have read since the $1 to K20. One opposition politician offered a mouthful of words and economic jargon – nothing more.

EXCHANGE RATE MANAGEMENT needs a consistently dedicated team of managers/professional whose job is to seek supply avenues in the country and consistently monitor demand – advise BOZ and GRZ. More like we fighting COVID 19 – special dedicated team not only care and maintenance of the kwacha but “researching for the “vaccine”.

It’s a department or agency gathering data every day until we know exactly not statistically where the linkages are, greed, etc

Please half-baked economic comments won’t help. Leave that to my uncle Muliokela.

Ignore me at you own imperil. I warned you through Ronald Penza on TV when he suspended “exchange controls”. Ain’t saying re-introduce exchange control. Remember you were taught “if you cannot measure it you cannot manage it”. “Lunacy is doing the same thing over and over and expecting different results”. Am tired of textbook theories. One my lecturers – a visiting Professor once said “whatever you do remember Keynes or many economists never ruled a country”.

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1 COMMENT

  1. When you want to explain something, be as dispassionate and as neutral as possible.
    There are Four Pillars that determine a country’s currency exchange:
    1. Political Stability – Rule of Law is Fundamental.
    2. Fiscal policy – Fiscal discipline – managing the expenditure side of things and keeping debt to a minimum. Political discourse that is anti-inflammatory especially from the top.
    3. Positive Trade Surplus – Produce more, Export more, import technology, not finished products!
    4. Attractive Interest Rates and good credit score!
    Only one politician has been consistent in preaching these fundamentals. I won’t mention his name. He even foretold how the Kwacha was soon to trade at K20 to a USD. Our tragedy as a nation is choosing leaders who don’t understand basic Economics! Zero understanding of basic econometrics!
    Right now, we have leaders who can’t tell the difference between Fiscal Policy and Monetary Policy. When you compromise the independence of BOZ, you are screwed! It’s shocking to learn that knowledgeably ignorant Cadres have asked their pay masters to weed BOZ of Directors who are perceived to be too Professional or potentially anti-establishment!
    Unfortunately for Zambia, we have not seen the worst yet. With loss of BOZ independence, our credit rating which is just a step away from the last rating of D – Default is imminent! The ruling party is now in charge of both Fiscal and Monetary policies which is dangerous!
    Check out this great analysis below that helps to sumerise well Zambia’s precarious position following the firing of BOZ Governor and appointment of someone perceived to be user-friendly to the establishment.
    https://youtu.be/nXRK_2mogpg
    Zambia is Screwed!

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