Many people are of the view that introducing new notes based on the ‘rebased’ currency would force those people to try and bring that money back into circulation.

Imports become cheaper Zambia’s balance of trade has a leaning towards imports.

(2) Exports from Zambia become more expensive in international markets.

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“Knowledge is power” -Francis Bacon That is why I want to be one of the first to add to the body of knowledge over the announcement a few hours ago by the government that it would “rebase the Zambian [currency the] Kwacha by dividing the current notes by 1000”.

However, after implementation of the revaluation about K5 will be needed to obtain$1.

This has a number of implications from the Zambian perspective.

This is assuming the current approximate rate of K5000 per U. If this rate suddenly changes to$1=K5, the Zambian importer would get $1 worthof U. Presuming the Zambian’s earnings and all else remain equal, Zambian imports are now cheaper by K4,995.

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.Hence the conclusion, exports from Zambia will be more expensive to foreign markets (all else being equal). S producer of airtime currently sells to Zambia, they get approximately $1 for every K5000 of airtime produced.Investor confidence It may also be argued that the psychological ‘increase’ in value of the Kwacha creates an impression to citizens and investors that the Kwacha is a strong currency.

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If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.

This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.

Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.

If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.

Hence the conclusion, exports from Zambia will be more expensive to foreign markets (all else being equal). S producer of airtime currently sells to Zambia, they get approximately $1 for every K5000 of airtime produced.

Investor confidence It may also be argued that the psychological ‘increase’ in value of the Kwacha creates an impression to citizens and investors that the Kwacha is a strong currency.

||

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.

This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.

Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.

If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.

, the airtime selling company would now have to get 00 for K5000 worth of talk time to an American consumer.Hence the conclusion, exports from Zambia will be more expensive to foreign markets (all else being equal). S producer of airtime currently sells to Zambia, they get approximately

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.Hence the conclusion, exports from Zambia will be more expensive to foreign markets (all else being equal). S producer of airtime currently sells to Zambia, they get approximately $1 for every K5000 of airtime produced.Investor confidence It may also be argued that the psychological ‘increase’ in value of the Kwacha creates an impression to citizens and investors that the Kwacha is a strong currency.

||

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.

This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.

Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.

If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.

Hence the conclusion, exports from Zambia will be more expensive to foreign markets (all else being equal). S producer of airtime currently sells to Zambia, they get approximately $1 for every K5000 of airtime produced.

Investor confidence It may also be argued that the psychological ‘increase’ in value of the Kwacha creates an impression to citizens and investors that the Kwacha is a strong currency.

||

If you are Zambian, do not be excited yet because everything becomes messed up when that ‘all else being equal’ is lifted.

This is likely to be exacerbated by recent situations where people cry foul over those in governance not following tender procedures in the allocation of public contracts and hence not doing things in the public’s best interest.

Mindset change/pricing Another foreseeable problem is possibility of failure to change the mindset of the Zambian public.

If a solely Zambian company produces and sells these to the U. However, if the Kwacha is now rebased to K5 for every $1, the airtime selling company would now have to get $1000 for K5000 worth of talk time to an American consumer.

for every K5000 of airtime produced.Investor confidence It may also be argued that the psychological ‘increase’ in value of the Kwacha creates an impression to citizens and investors that the Kwacha is a strong currency.