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LUSAKA (Reuters) – Zambia’s kwacha fell nearly 3.5 percent to an all-time low against the dollar on Monday, weighed down by continued concerns over growth in China, a major export destination for Africa’s number two copper producer.
“What is exaggerating these moves is the concerns over demand from China, as Zambia is highly dependent on copper,” said Gerald Ndhlovu, a trader with FNB’s treasury division in Lusaka.
“You expect these moves but the speed at which these are happening is worrying,” Ndhlovu said.
The kwacha first shed more 2 percent earlier in the session before slipping further. By 1300 GMT the unit traded at 8.8500, down 3.15 percent, having fallen as low 8.8900.
Zambia’s finance ministry said on Sunday it expected slower economic growth and a wider fiscal deficit in 2015 due to weak global demand for copper, more so in the economy of China – a key consumer of the metal.
Copper export earnings dropped 29.9 percent in the six months through June, compared with the first half of 2014, the ministry said.
“A big problem in Zambia is also the power crisis, and the revision of the government’s growth forecast this year to 5 percent,” said Irmgard Erasmus, a Zambia analyst at NKC African Economics.
The southern African country has been battling severe power shortages after drought depleted water levels at hydro-electric plants, forcing power companies to cut electricity supply to mining firms earlier this month..
“Dollar supply is very restricted due to reduced productivity arising from the power problems that Zambia is facing,” analyst Maambo Hamaundu told Reuters, adding that this was preventing fresh investment into the economy.
Thomson Reuters
by December,it will hit 2 digits
Twafweniko
Twafweniko
in mwanawasa government that’s the only time l heard of kwacha been appreciated.That is one of his legacy l wil never forget.
Zambian Kwacha…high today…gone tomorrow
Dependence on foreign aid is alwayz de case. Wen ar we going 2 wean ourselves from external aid? Wat major things cant we dispense wth? Cant we allure foreign investers 2 opn up such industries. Most raw materials ar obtained in
Africa.
hope the world ends in december….cause this is so bad
inkomfwe ati ifintu nifyoto…..
And some p.f supportaz wil say ifintu ni Lungu!
… and no action has been taken against anyone for this poor show!
Jxt waiting for HH to be in state house #PF has failed. UPND is our next hope.
Can all this be attributed to low water levels? Or its just the economy mismaNagement by the chagwa admnistration?
Change the currency from kwacha to dollar
Plus loadsheddind increased by adding another 3hours to current 5hours
Imwe bashimweshimwe kulanda ati natufilwa twapeko bambi ya!
Hmmmm God help mother Zambia,
Muli uyu musango ala mu cabinet mwabafye ifishishi fyeka fyeka
Tht hw u behave wen u r stealng…4getng tht pipo r sufferng
#smh management management…….I wonder why some people can’t attest failure by stepping down & pave way for those who can manage the economy. This is clear selfishness & not caring for the citizens.
Were are we going