The appointment of BOZ acting Governor was knee jerk reaction.
By Josephine Chanda
President Edgar Lungu’s appointment of Dr Francis Chipimo as acting Bank of Zambia Governor, was a gut reaction after the unceremonious sacking of a veteran and internationally respected Central Banker, Dr.Denny Kalyalya, led to a severe avalanche of criticism from International lenders, regional financial gurus and ordinary citizens.
President Lungu appointed Christopher Mvunga, a fellow Easterner and an uncelebrated debutant in the business of International financial markets, to take over from Kalyalya.
According to Bank of Zambia sources, the annual Board meeting of the central bank is due for its summer sitting, and by requirement of law, a newly appointed Governor cannot participate in such a meeting unless and until Parliament ratifies his appointment and similarly, the board meeting would not attain a quorum without his presence.
The incoming Board meeting is crucially expected by Lungu to rubber stamp certain decisions that favour his political agenda in line with the 2021 election which he wants to win by any means. This may include the printing of money that is predictably expected to spark a runaway inflation on the scale of Zimbabwe.
Following this turn of events and after he was advised, President Edgar Lungu scrambled to appoint Dr Chipimo to superintend the affairs of the Bank, until after the Board meeting and the ratification of Christopher Mvunga.
Impeccable sources within PF however add that Northerners were not thrilled by Lungu’s choice of Mvunga as opposed to their tribesman, (Chipimo) and interpreted it as an effort to marginalize and push them away from the power pool. To that effect, the appointment of Dr Chipimo may be viewed as Lungu’s attempt to temporarily appease the Bembas.
According to Lungu’s letter dated 22nd August 2020, Chipimo would act as the Central Bank Governor until the Zambian National Assembly that is in recess, would resume business. There are unconfirmed reports that President Lungu may finally settle for Chipimo inorder to stabilise the jittery international money markets that do not approve of a political appointee Christopher Mvunga.