(Bloomberg) -- Zambia’s central bank published plans to criminalize the use of foreign currency in the local economy amid the biggest rally in the kwacha in four months.

Zambia Drafts Penalties to Curb Dollarisation; Kwacha Jumps!!

The southern African nation has faced severe currency volatility over the past five years, driving up the cost of imports and fanning inflation, which neared a two and a half year high this month. Companies from car dealers to mall landlords and hotels often charge in dollars, shunning the local kwacha.

A draft document shared by the Bank of Zambia Saturday showed those found using foreign currency for domestic transactions may face prison terms of up to 10 years or fines. The kwacha gained about 7% on the last trading day of the week.

“When people basically are functioning significantly in dollars, then obviously the tools which we have to actually carrying out our mandate are blunted,” Bank of Zambia Deputy Governor Francis Chipimo said Friday. “External shocks are also in a way exacerbated in our market.”

Strong Recovery
The Bank of Zambia is still discussing the proposed rules with market participants, Chipimo said in comments broadcast on privately-owned Diamond TV Zambia.

The kwacha has been among the world’s worst performing currencies over the past 12 months, depreciating by 28%, according to data compiled by Bloomberg. It’s staged a strong recovery this month to become the biggest gainer globally, after the nation finally ended a near-four year default on its dollar bonds and received an outsized $570 million payment from the International Monetary Fund.

Factors that have contributed to the currency volatility include the drawn-out debt restructuring process, a plunge last year in the output of copper, Zambia’s main source of export earnings, and more recently a severe drought that’s increased the import bill.

The servicing of its restructured dollar bonds may add to foreign currency pressures.

Zambia introduced restrictions on dollar use among local businesses in May 2012 and abolished them less than two years later.

--With assistance from Matthew Hill.

This is a Govt that really wants to nib the challenge at it's bud...not this type of jekujeku Govt of druggie & Patch patch CBN!

I sometimes wonder if there are no sound local Economic Consultants in Nigeria any more, even if na paddy Paddy una take recruite am..... recruit am sharp sharp and listen to the Consultant!

PZ despite selling more products recorded huge losses..... Won't be surprised the shareholders would think of cutting their losses and quitting!

Wetin I Sabi sef, if they criminalize spraying of dollars or accepting Dollar as payment in lieu of local Fiat currency, how will they run their loots on your faces?

Enjoy the push & start Govt while it lasts!

This will never happen in Nigeria

The use of dollars in routine transactions is still rare in Nigeria. So, it is not as big a problem as it is in Zambia.

It happens mostly in property transactions involving Nigerians based abroad, which is understandable in some ways.

Besides, the CBN banned the practice a few months ago and the ban was well publicised, even here on Nairaland.

So abusing the Cbn Governor and the government for not banning it is a reflection of the wanton rudeness that typifies how many of you engage with other people.

The problem is Zambia does not have the kinds of citizens who will be ready to circumvent any policy like thier Nigerian counterparts

Do you understand what you have read? Do Nigerians charge in dollar? Abi what's wrong with your headless mobs for goodness sake?

Aphrygian:
The problem is Zambia does not have the kinds of citizens who will be ready to circumvent any policy like thier Nigerian counterparts

Not only circumvent it but turn it on it's head and develop a whole new format of scam on it

This was possible in Zambia coz there is no Hausa-Fulani Mai-$ bureau de changers in this country.
The Zambian government do not sponsor their citizens for religious and ritual pilgrimage.
The no of Nigerians that conduct invisible transactions outnumbered that of Zambia.

BigkokoRep:
(Bloomberg) -- Zambia’s central bank published plans to criminalize the use of foreign currency in the local economy amid the biggest rally in the kwacha in four months.

Zambia Drafts Penalties to Curb Dollarisation; Kwacha Jumps!!

The southern African nation has faced severe currency volatility over the past five years, driving up the cost of imports and fanning inflation, which neared a two and a half year high this month. Companies from car dealers to mall landlords and hotels often charge in dollars, shunning the local kwacha.

A draft document shared by the Bank of Zambia Saturday showed those found using foreign currency for domestic transactions may face prison terms of up to 10 years or fines. The kwacha gained about 7% on the last trading day of the week.

“When people basically are functioning significantly in dollars, then obviously the tools which we have to actually carrying out our mandate are blunted,” Bank of Zambia Deputy Governor Francis Chipimo said Friday. “External shocks are also in a way exacerbated in our market.”

Strong Recovery
The Bank of Zambia is still discussing the proposed rules with market participants, Chipimo said in comments broadcast on privately-owned Diamond TV Zambia.

The kwacha has been among the world’s worst performing currencies over the past 12 months, depreciating by 28%, according to data compiled by Bloomberg. It’s staged a strong recovery this month to become the biggest gainer globally, after the nation finally ended a near-four year default on its dollar bonds and received an outsized $570 million payment from the International Monetary Fund.

Factors that have contributed to the currency volatility include the drawn-out debt restructuring process, a plunge last year in the output of copper, Zambia’s main source of export earnings, and more recently a severe drought that’s increased the import bill.

The servicing of its restructured dollar bonds may add to foreign currency pressures.

Zambia introduced restrictions on dollar use among local businesses in May 2012 and abolished them less than two years later.

--With assistance from Matthew Hill.

This is a Govt that really wants to nib the challenge at it's bud...not this type of jekujeku Govt of druggie & Patch patch CBN!

I sometimes wonder if there are no sound local Economic Consultants in Nigeria any more, even if na paddy Paddy una take recruite am..... recruit am sharp sharp and listen to the Consultant!

PZ despite selling more products recorded huge losses..... Won't be surprised the shareholders would think of cutting their losses and quitting!

Wetin I Sabi sef, if they criminalize spraying of dollars or accepting Dollar as payment in lieu of local Fiat currency, how will they run their loots on your faces?

Enjoy the push & start Govt while it lasts!

By Asiwaju and patch patch action, it is well justified when we assume both are bunch of never-do-well, who don't mean well for Nigerians!
All of them working at cross purposes....

Nukilia:
This will never happen in Nigeria

Few weeks ago, Kenya was top of the praise list, today, Kenya youths are top of the praise list, today, it's Zambia.

Leadership starts from the head! let me tell you what happened when the Mayor of Lusaka bought a Luxurious Jeep from the Council Funds.
Says he:
"The jeep is a beautiful car which The mayor certainly deserve, but he will have to buy it with his own money, or take a loan to acquire it". with that he ordered it to be sold immediately and the proceeds used in building over 100 toilets and other facilities in the markets in Lusaka.

Can Asiwaju say a thing like this? When everyone knows how dirty and corrupt he is!

Mankind2024:
This was possible in Zambia coz there is no Hausa-Fulani Mai-$ bureau de changers in this country.
The Zambian government do not sponsor their citizens for religious and ritual pilgrimage.
The no of Nigerians that conduct invisible transactions outnumbered that of Zambia.

Even as tatter as the Kenyan economy is, with no single mineral resources save tourism & services, their economy is more resilient and boyount than that which Asiwaju oversee. but sha, person wey never travel outside before go think say other countries be like their own! Go and check out Nairobi and confirm how a big city should be!

JagabanB:
Few weeks ago, Kenya was top of the praise list, today, Kenya youths are top of the praise list, today, it's Zambia.

Omo Nigeria matter tire person ohhh... I know a lot of people crying and suffering due to FX losses since Asiwaju usurp a mandate freely given to another person....even at that the werey no fit lead well.... .

even the pilgrims, he almost used hungry finish them for Mecca....the first time Nigerian pilgrims were subjected to hunger in Mecca.... wallahi Asiwaju na confirm plague to Nigeria!

Mankind2024:
This was possible in Zambia coz there is no Hausa-Fulani Mai-$ bureau de changers in this country.
The Zambian government do not sponsor their citizens for religious and ritual pilgrimage.
The no of Nigerians that conduct invisible transactions outnumbered that of Zambia.

BigkokoRep:
Even as tatter as the Kenyan economy is, with no single mineral resources save tourism & services, their economy is more resilient and boyount than that which Asiwaju oversee. but sha, person wey never travel outside before go think say other countries be like their own! Go and check out Nairobi and confirm how a big city should be!

LOL.
People who don't travel are the ones who are quick to say others don't travel.
When u don't travel, u will naturally think that's how life is with others.
Go to Kenya and compare Kenya with Nigeria and their citizens will tell you otherwise.
Walk on the streets on Nairobi and u will see so many homeless people on the streets, people whose children will get snatched from them while they are sleeping on the street, can u say same for Abuja?
staying in ur cave and assuming people don't travel because u don't travel is laughable.

Your head need to be examined. Ohhh...today's 30th....30k loading. bruhnnnn carry on, even you sef na mama born you!

ObiORBiafra:
Do you understand what you have read? Do Nigerians charge in dollar? Abi what's wrong with your headless mobs for goodness sake?

When you don't travel..... .....Without doing single due diligence, Them go come online open mouth waaa like pregnant fish wey hook catch. Awon go to Kenya.... awon homeless people.....awon this and that.
My dear I understand today's 30th.....so make I no make your hustle harder! Na Kenya wey I dey go cash out my PayPal when ever I am in Africa abi na Kenya for Iragbiji?

JagabanB:

LOL.
People who don't travel are the ones who are quick to say others don't travel.
When u don't travel, u will naturally think that's how life is with others.
Go to Kenya and compare Kenya with Nigeria and their citizens will tell you otherwise.
Walk on the streets on Nairobi and u will see so many homeless people on the streets, people whose children will get snatched from them while they are sleeping on the street, can u say same for Abuja?
staying in ur cave and assuming people don't travel because u don't travel is laughable.

THAT IS WHY I SAY AND KEEP SAYING THAT THE BANKERS AND MINISTRIES ARE THE CULPRITS, THE SABOTEURS AND THE CRIMINALS. THEY PATRONIZE BDCS, HOTELS, PARALLEL MARKETS AND HOARD DOLLARS TILL DOOMSDAY.. I THINK EDUN AND CARDOSO ARE HAUSA FULANIS AND BLACK MARKET OPERATORS.

Half baked information as usual

Trash from an old corn mulcher

Go and get a job! This tread is not for jobless people

Serious Central bank officials are taking actions that will safeguard their economies, but Asiwaju & patch patch CBN gov dey behave like drunen pilots about to crash their planes, and applauded by online miscreants both young & old.

Companies are bleeding. parents sending FX outside Nigeria are bleeding, abi because the old werey stole himself to power, people no go send their children abroad again? yet the werey go abroad too!

helinues:
Half baked information as usual

The Zambiam Kwacha is the best performing currency in Africa until their bankers started learning from the West African kiths...

Iamanoited:
THAT IS WHY I SAY AND KEEP SAYING THAT THE BANKERS AND MINISTRIES ARE THE CULPRITS, THE SABOTEURS AND THE CRIMINALS. THEY PATRONIZE BDCS, HOTELS, PARALLEL MARKETS AND HOARD DOLLARS TILL DOOMSDAY.. I THINK EDUN AND CARDOSO ARE HAUSA FULANIS AND BLACK MARKET OPERATORS.

He can not but the alternative which you support Peter Pandora Obi can never do that as well instead he as been caught severally looting ₦250 million monthly from Anambra coffers to his warehouse in Orile Lagos state so what choice do Nigerians have.

BigkokoRep:
Leadership starts from the head! let me tell you what happened when the Mayor of Lusaka bought a Luxurious Jeep from the Council Funds.
Says he:
"The jeep is a beautiful car which The mayor certainly deserve, but he will have to buy it with his own money, or take a loan to acquire it". with that he ordered it to be sold immediately and the proceeds used in building over 100 toilets and other facilities in the markets in Lusaka.

Can Asiwaju say a thing like this? When everyone knows how dirty and corrupt he is!

BigkokoRep:
When you don't travel..... .....Without doing single due diligence, Them go come online open mouth waaa like pregnant fish wey hook catch. Awon go to Kenya.... awon homeless people.....awon this and that.
My dear I understand today's 30th.....so make I no make your hustle harder! Na Kenya wey I dey go cash out my PayPal when ever I am in Africa abi na Kenya for Iragbiji?

LOL.
If you have been to Kenya, u won't be typing the sh*t u have been typing, u typed from a place of ignorance so what I'm telling comes as a shock to u because you haven't travelled, try and travel.

So you sit in your shack at ogbomosho and talk about a place you have never been to? Do you have shame at all? Na PayPal and the team I manage dey make me frequent Kenya. Don't talk from position of ignorance....

Una go just load data come open waaa like pregnant fish dey talk nonsense! If una leaders try wetin them dey give una for NIGERIA in Kenya, they will burn even Aso Rock. Go and watch YouTube what they did to their Parliament. You think say na every Africa people be mumu like una Asiwaju supporters?

The biggest problem is having miscreants who understands nothing!

If you want some gigs, I can connect you so you don't have to depend on a miserable 30k lifeline defending idiots ruining lives and businesses!

Enjoy the pishures....we no dey depend on politicians, we dey run personal business as well as international gigs!

Go and get a job. Politics no be job!

JagabanB:

LOL.
If you have been to Kenya, u won't be typing the sh*t u have been typing, u typed from a place of ignorance so what I'm telling comes as a shock to u because you haven't travelled, try and travel.

BigkokoRep:
So you sit in your shack at ogbomosho and talk about a place you have never been to? Do you have shame at all? Na PayPal and the team I manage dey make me frequent Kenya. Don't talk from position of ignorance....

Una go just load data come open waaa like pregnant fish dey talk nonsense! If una leaders try wetin them dey give una for NIGERIA in Kenya, they will burn even Aso Rock. Go and watch YouTube what they did to their Parliament. You think say na every Africa people be mumu like una Asiwaju supporters?

The biggest problem is having miscreants who understands nothing!

If you want some gigs, I can connect you so you don't have to depend on a miserable 30k lifeline defending idiots ruining lives and businesses!

Enjoy the pishures....we no dey depend on politicians, we dey run personal business as well as international gigs!

Go and get a job. Politics no be job!

Two kinds of people are difficult to deaI with, the ones who taste small success they never imagined that will ever taste in their lives, I just remembered I asked you some months ago about ur business that u were trying to set up, u have seen $200 now and the next thing is to post receipts?
🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
From ur rants, u haven't been to Kenya, I'm 100% sure u have never crossed border, using PayPal is not a new innovation just that it's new for u because I don't see why someone will be ranting about PayPal from comment to comment, seems u just hit the jackpot.
If u have ever been to Kenya, u won't be typing the sh*t u are typing.
Since u go to Kenya very often, let's make a deal, do a random street in Nairobi about homeless people on the streets and what they go through.
Ignorance is bliss for so many of u.
Don't let $200 make u feel like u have made it in life.
Ahhhhhh!!!