THE Patriots for Economic Progress says it feels exonerated regarding its long-standing position that the current appreciation of the kwacha is artificial.
The party states that the appreciation was engineered by the Bank of Zambia, initially to make the PF look good before the general elections, and subsequently to help newly elected President Hakainde Hichilema’s ‘prophecy’ come true, where he had asserted that the kwacha would appreciate when he is elected into office.
PeP leader Sean Tembo yesterday said he had noted that it had now been over a month since the kwacha “suddenly” started appreciating against major convertible currencies.
He however, said despite the kwacha appreciating by more than 30 per cent so far, there is no visible reduction in the shelf prices of imported goods in shops.
“This is evidence that various business entities see this appreciation of the kwacha as artificial as it is not driven by economic fundamentals, and therefore it is not sustainable in the medium term,” Tembo said. “As Patriots for Economic Progress we are fully aware that the kwacha exchange rate is a hot political issue.”
He advised the Bank of Zambia to always act professionally, independently and stop using currency manipulation as a political tool for politicians.
“Otherwise they will diminish the little remaining credibility that they have as a central bank,” said Tembo.