The reality of the fall of the Kwacha The Kwacha was at K330 to the Dollar a couple of months ago. It is now at K500. The fall by K170 means the Kwacha has lost value by more than 50%! This means we should expect imported stuff to increase 40-75%. In other words any increase that is less than at least 40-75% makes the increase nugatory. IN other words in terms of real earnings, there is a reduction (negative growth). Those with no increase at all or increases below 40% are in for some tough economic times! Even the top civil servants who were given 85% will see their increase wiped off in an instant! That is what last time I disagreed with MCP Shadow Finance Minister Njovuyalema who was against investing pension money in foreign security instruments. It is during times such as this when such type of hedging proves fortuitous and such investments help to cushion the pension kitty against domestic upheavals
Posted on: Mon, 27 Oct 2014 12:30:12 +0000
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