The International Monetary Fund (IMF) has warned Zambia against a proposed dedollarization initiative, citing the potential underminement of inflation control efforts.
The IMF says the country’s economic conditions are not conducive to dedollarization, as it lacks low and stable inflation rates. The IMF’s warning comes after the Bank of Zambia proposed promoting local currency use and the Central Bank’s proposed severe penalties for up to 10 years in jail for businessmen demanding US dollars for local transactions.
What do you make of this push and pull between IMF and Zambia? #DWAfrica
Let us do what is good for Zambia and not what is good for IMF, these guys want to champion the dollar to the detriment of the kwacha, let us go ahead with de dolarisation and make the kwacha strong
This is just chaps gropping for a story. Last week it was BOZ. Without BOZ every making a statement to the fact, someone was spreading rumours. Now its the IMF. When the IMF or World Bank has something to say. The will be a Press Release or statement to certify a statement made on an issue. Ba Kachepa wanting to seem relevant. Are quick to say, without the person having uttered a word.
We are at the mercy of IMF so we have to follow
What they say otherwise No more loans(kongole).
IMF advice is correct. The volatile exchange rate and high inflation are because of 3 factors.
1. The incentives given to the mines in order to “unlock” enterprise nickel deposit/mine for FQM. This has caused a huge gap in forex inflows. All this for benefit of white foreign owners of FQM rather than the Zambian people. Countrymen, if a mining house claims that they cannot profitably mine our resources, let them go elsewhere and leave our minerals in the ground for our future generations.
2. We have had a severe drought which has affected agricultural output and electricity supply further strangling the paltry economic activity. There is no production to backup the strength of the kwacha. Any attempt to artificially strengthen the kwacha using laws will just drive the little forex we have underground. We will end up with an artificial strong kwacha on paper and an exorbitant us dollar on the black market. Two exchange rates in on country. Just go to Zimbabwe to understand this.
3. We import nearly everything fuel, cars, solar panels, paints and now maize. Even what we manufacture or sale is foreign owned eg cement, bricks and pavers, shoprite, PnP, Airtel, MTN etc. Profits are continously externalised. This means that we are prone to imported inflation and constant externalisation of profits by the foreign entities.
In conclusion, the structure of the economy is so skewed to foreign interests/operators that it is actually dangerous to enact laws that will drive forex and strangle the little economic activity going on. Start promoting Zambian ownership of businesses and manufacturing. Stop dishing out tax incentives to foreign entities. Zambian will only developed by Zambians. Once the kwacha strengthens based on these fundamentals ( local ownership of businesses and local manufacturing) then you can enact these funny laws. It is sad that there was so much excitement and a lack of thorough understanding when FQM and other mines were given extremely outrageous incentives without regard to the pain that this single act would bring onto the rest of the population. Let’s pray for our leaders to put us Zambians first when they make decisions.
The answer to the problem is to bring fundanga Caleb not kalyalya knows nothing unless graphics
Where’s the IMF statement?
Cultures always tell you not to leave the jungle, cos if you left, there wud be no more carcasses to feed on.But there is no way you ll test meat no matter how long u stayed in the jungle cos the system there is clear on who eats who and who gets eaten while the vulture dangles good pieces of meat in your face every morning, telling u to work hard,but he makes sure u never ever be able one day to afford as he eats.