The rapid appreciation of the Kwacha against the United States dollar and other international convertible currencies must be celebrated.
In the same manner we complain when the Kwacha depreciates due to the burdens the same places on the economy and households, in terms of hiked prices and upwards shifts in inflationary pressures, so should the rapid appreciation be celebrated.
And just as we condemn and denounce the government when the local currency experiences headwinds, even during times when the same is occasioned by outside factors, so should we also credit them, even when some factors influencing the same are outside factors.
The appreciation of the Kwacha has been attributed to improving macroeconomic fundamentals, such as reductions in the rate of inflation, improved international reserves, debt restructuring, among other macroeconomic variables. And credit must rightly go towards the government for achieving such milestones. The other factors contributing towards the appreciation are external in terms of the sharp rise in the prices of copper, the country’s mainstay. The price of copper recently hit a record high US$14,000 per tonne on the London Metal Exchange. Just to appreciate the magnitude of this jump, during late president Levy Mwanawasa’s administration, copper prices at around $7000 per tonne were considered so good such that they even attracted a windfall tax on the mines, which briefly benefited the country, before the same was unfortunately scrapped off under his successor late Rupiah Banda’s administration.
For the government, the plan should mostly focus on the next course of action to entrench this windfall situation we are in where macroeconomic variables seem to be improving, and the prices for the country’s mainstay are still high on the international market. Because, much as the copper prices are projected to continue improving, we must be alive to the fact that these are also commodities whose prices may nosedive anytime. Therefore, there must be plans put in place to ensure that the country cashes in sufficiently on this momentum where copper prices are sky high.
As for the macroeconomic fundamentals, the government must work towards a sustenance programme where they will continue working towards improvements in these fundamentals, while ensuring that the effects of the improvements start to make a telling effect in the pockets and households of the Zambian people.
The time we are in should be maximised to ensure that the same is translated into a golden period which Zambians may potentially look back on with very fond memories as having potentially announced the next stage in the nation’s progress.
By Daily Revelation Editor
The rapid appreciation of the Kwacha against the United States dollar and other international convertible currencies must be celebrated.
In the same manner we complain when the Kwacha depreciates due to the burdens the same places on the economy and households, in terms of hiked prices and upwards shifts in inflationary pressures, so should the rapid appreciation be celebrated.
And just as we condemn and denounce the government when the local currency experiences headwinds, even during times when the same is occasioned by outside factors, so should we also credit them, even when some factors influencing the same are outside factors.
The appreciation of the Kwacha has been attributed to improving macroeconomic fundamentals, such as reductions in the rate of inflation, improved international reserves, debt restructuring, among other macroeconomic variables. And credit must rightly go towards the government for achieving such milestones. The other factors contributing towards the appreciation are external in terms of the sharp rise in the prices of copper, the country’s mainstay. The price of copper recently hit a record high US$14,000 per tonne on the London Metal Exchange. Just to appreciate the magnitude of this jump, during late president Levy Mwanawasa’s administration, copper prices at around $7000 per tonne were considered so good such that they even attracted a windfall tax on the mines, which briefly benefited the country, before the same was unfortunately scrapped off under his successor late Rupiah Banda’s administration.
For the government, the plan should mostly focus on the next course of action to entrench this windfall situation we are in where macroeconomic variables seem to be improving, and the prices for the country’s mainstay are still high on the international market. Because, much as the copper prices are projected to continue improving, we must be alive to the fact that these are also commodities whose prices may nosedive anytime. Therefore, there must be plans put in place to ensure that the country cashes in sufficiently on this momentum where copper prices are sky high.
As for the macroeconomic fundamentals, the government must work towards a sustenance programme where they will continue working towards improvements in these fundamentals, while ensuring that the effects of the improvements start to make a telling effect in the pockets and households of the Zambian people.
The time we are in should be maximised to ensure that the same is translated into a golden period which Zambians may potentially look back on with very fond memories as having potentially announced the next stage in the nation’s progress.
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