LUSAKA (CyHAN)- Zambia's currency, the kwacha
, appreciated significantly on Friday following a state of nation address by President Edgar Lungu.
has dropped to half of its value against the dollar this year.
experts say the kwacha
is experiencing its worst crisis since
THE 100,000 Kwacha
purse - just over [euro]17,000 - is far short of the mega bucks Floyd Mayweather and Manny Pacquiao will earn in Nevada.
The Zambian kwacha
has shed around 20% of its value over the last 18 months, and Edgar Lungu--who succeeded the populist president Michael Sata after his death--is under pressure to restart growth and create jobs in a stuttering and increasingly indebted economy.
Currently, forward markets exist for a few of the currencies, while currency futures are restricted to only four currencies - the Mauritian rupee, South African rand, Botswana pula - and the latest addition, the Zambian kwacha
Banda was elected to office in the midst of a severe economic crisis in Malawi and immediately took steps to devalue the kwacha
, Malawi's currency, and reign in government spending.
An IMF-backed devaluation of Malawi's kwacha
currency has caused inflation to rise to over 35 percent per year.
Within a month of taking office, Banda devalued Malawi's currency, the Kwacha
, by a third against the dollar as well as removing subsidies on fuel and other commodities - conditions set by the IMF to regain the aid lost under her predecessor - and as a result, the IMF awarded Malawi a three-year loan of 157 million dollars.
Zambia's Finance minister Alexander Chikwanda launched the new Kwacha
notes assuring the citizens that the move to rebase currency was meant to address previous bouts of depreciation.
This, critics say, largely stems from President Mutharika's refusal to devalue the local currency, the Kwacha
, which is among IMF conditionalities for the resumption of Extended Credit Facility (ECF) to Malawi.
DJ Bones performing at the Kwacha
organised International Dj Festival in Likoni, Mombasa.