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Lungu scores own goal in firing BoZ governor- economic experts

Filed under: Business,Latest News,Politics |
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Dr Denny Kalyalya

According to those who are well versed in the financial markets, the move taken by President Edgar Lungu, yesterday to fire Dr. Kalyalya as Bank of Zambia Governor would backfire as the market responds.

Experts say it is a well known phenomenon, world over that financial market forces are premised on confidence in a country’s macroeconomic environment and would respond to what is done by or to the monetary authorities.

Meanwhile, renowned economic analyst, Trevor Simumba says the decision to fire Dr. Kalyalya is ill timed and not good for the Zambian economy.

He told Diamond TV that the decision by Lungu may affect Zambia’s ongoing engagement with the International Monetary Fund for a bailout program.

Simumba added that the position of Bank Governor is sensitive and needs to be handled with caution.

Apparently, South African Minister of Finance Tito Mboweni says Presidents in Africa must stop this nonsense of waking up in the morning and fire a Central Bank Governor.

“No. That Governor was a good fella. Why do we do these things as Africans. The President of Zambia must give us the reasons why he dismissed The Governor or else hell is on his way. I will mobilize!” He wrote on his Twitter handle.

In the same light, UPND president Hakainde Hichilema says the changes at Bank of Zambia is ill-informed and poorly timed, adding that the consequences will be disastrous for our economy.

“The management of the Kwacha doesn’t only require sound monetary policy interventions but fiscal policy too. In other words, BOZ shouldn’t be solely responsible for the stability of our currency,” he says.

Meanwhile, while it is yet to be established as to why Lungu fired Kalyalya, the speculations making circles are that the President could have been angered by the former apex bank governor who recently said the country’s economy is shrinking.

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