You cannot manage the economy with propaganda. Infact, you can engage in all the propaganda you want, but if the fundamentals are weak, the exchange rate will expose you!
Lusaka, Jan. 25 – Former Finance Minister Edith Nawakwi has charged that the Kwacha will continue on the same freefall trajectory as long as President Hakainde Hichilema remains in power.
The Kwacha is currently buying and selling at K26.48 and K26.99 against $1 Dollar as of yesterday.
And economists have warned that the Kwacha performance against other major convertible currencies is expected to worsen if right policies are not swiftly put in place to arrest the current freefall experienced in the past months.
And Ms. Nawakwi, who is President for the Forum for Democracy and Development, says the continued deprecation of the Kwacha against major convertible currencies is a clear indication that President Hakainde Hichilema has lamentably failed to sustain the country’s economy.
Also Read: We don’t have a capable leader to mobilise national wealth. By Edith Nawakwi.
“It would be a waste of time to get the debt restructuring without creating the necessary production capacity in the country to repay the debts when the repayments are due!” – Nawakwi.
In agreeing with President Nawakwi, we wish to share what President Hakainde Hichilema posted in 2019 as opposition leader!
“As we look forward to a new week ahead of us, let us reflect and draw lessons from the wise words of Ghanaian Vice President His Excellency Dr. Mahamudu Bawumia:
‘In an open economy with market determination of prices, exchange rate movements are the most important indicators of the underlining macro economy fundamentals. As the saying goes, ‘when in doubt, observe the exchange rates’.
The lesson from this is that you cannot manage the economy with propaganda. Infact, you can engage in all the propaganda you want, but if the fundamentals are weak, the exchange rate will expose you’.
If in doubt, check the exchange rate! Here is the graph of the Kwacha performance against the US dollar for one month. Are you still in doubt?”
The rate was $1 = K17. Today, it’s $1 =K27! Who is better between Hichilema and Lungu? You have to be a fool to get this question wrong!
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