LUSAKA (The Business Telegraph): Zambia’s head of state on 28 August 2020 named Deputy Governor Operations – Dr. Francis Chipimo as acting central bank head pending ex commercial banker Christopher Mvunga’s ratification by parliament which resumes sessions on 11 September. This was contained in memo from state house press aide.
Barely 3 days after the the interest rate decision meeting outcome, Zambia woke up to a sudden change in monetary policy shift on Saturday 23 August that saw the sacking of Dr. Kalyalya to be replaced by former Deputy Secretary to the Cabinet for Economic and Finance Affairs Honorable Christopher Mvunga. This move has seen immense criticism from various stakeholders including offshores that have reacted through selling off holdings in Zambia’s dollar bonds causing a spike in yields. The Washington based lender in a presser on Monday 25 August stressed the need for central bank independence for financial system stability especially at time as this when the world is ravaged by COVID19. The copper producer seeks a Rapid Credit Facility with the IMF and commenced talks with the lender for economic bailout amidst elevated inflation, shriveling growth prospects, high debt service and a weakening currency.
Chipimo is an experienced central banker that serves as deputy governor operations a role he took up last year taking over from the current finance minister Dr. Bwalya Ng’andu. Prior, he served as Director Economics and has been instrumental in execution of current monetary policy stance. Analysts are keen on what Zambia’s monetary policy strategy will be with the new governor when his appointment is ratified.
The Kwacha Arbitrageur