Appreciation of the Kwacha is real, says Keith Mukata
By Fulman Mukobeko
Former Finance Deputy Minister Keith Mukata has parried assertions that the recent appreciation of the Kwacha is fictitious and not supported by economic fundamentals.
In a statement made available to the media, Mr Mukata who is also former Chilanga Member of Parliament clarified that the appreciation of the Kwacha was anchored in real and observable fundamentals.
Mr Mukata said it would be inaccurate to dismiss the recent appreciation of the Kwacha as artificial or unsupported by fundamentals.
“I have noted recent remarks by some of our colleagues suggesting that the appreciation of the Kwacha is “fictitious” and not supported by economic fundamentals. Having previously served as Deputy Minister of Finance, and with an appreciation of how exchange-rate dynamics work, I wish to respectfully clarify that the recent strengthening of the Kwacha is anchored in real and observable fundamentals,” he clarified.
Mr Mukata added: “The currency’s performance reflects improving economic conditions and growing confidence in Zambia’s policy direction. Sustaining these gains will require continued discipline, structural reforms, and a shared commitment to stability across the political spectrum.”
He said Zambia had made significant progress in restoring macroeconomic stability.
According to the Former Finance Deputy Minister, inflation has declined to single digits, fiscal consolidation has reduced pressure on the domestic market, and the on-going debt restructuring process has improved confidence among investors and cooperating partners.
“…These developments have strengthened Zambia’s external position and reduced uncertainty—key ingredients for exchange-rate stability,” he said.
Mr Mukata added that foreign exchange inflows have improved significantly.
He observed that the higher copper production and prices, alongside growing non-traditional exports and increased investor confidence, have enhanced FX supply in the market.
“… At the same time, prudent monetary policy and improved coordination between fiscal and monetary
have supported a more stable and predictable currency environment.
Mr Mukata said confidence was in itself a fundamental, saying markets respond not only to currency flows, but also to credible policy direction.
The Former Chilanga Member of Parliament said Zambia’s reform programme, supported by international partners and underpinned by fiscal discipline, had restored credibility in the economy. .
“The strengthening of the Kwacha reflects that restored confidence.
This is not to suggest that all challenges have been resolved or that exchange-rate movements alone define economic success,” he said.
Mr Mukata said the key task ahead was to ensure that macroeconomic stability translates into tangible benefits for citizens—lower prices, more jobs, and sustained growth.
Volcanic News
Here is another murderer convict that was pardoned by ECL. Ala ECL had such a big heart compare to Hakainde. He was a man and a half. If we knew in 2021 what we know now, ECL would still be president. But Hakainde had to lie his way to power. What a pathetic little liar. He will certainly get his just deserves soon. Karma is a b1tch for sure. And I for one can never piss on such dodgy characters if they caught fire.
REJECT TRIBALISM, CORRUPTION AND OPPRESSION.
VOTE FOR CHANGE IN AUGUST.