We Cannot Fix Exchange Rate-Veep

Vice President Mutale Nalumango says Government cannot fix the exchange rate between the Kwacha and the United States Dollar because it is an impossibility.

Responding to questions from Parliamentarians during the Vice President’s Question time, Mrs. Nalumango said reducing the exchange to K10 was never in the UPND’s manifesto prior to the 2021 general elections.

She stated that no one can promise to reduce the exchange rate to K10 or K8 due to currency flactuations.

“We cannot fix the exchange rate, it is an impossibility. Yes we said it will go down. Colleagues may be you fixed it, you came when the exchange rate was at K5 and after 10 years you left it at K23.”

“Today we are in the fourth year and it has gone up by 4 digits to K26 and K27. So let us not confuse people out there like something strange has happened and yet we have battled the global economy which has gone through a lot of difficulties but we have held on,” Mrs. Nalumango stated.

Meanwhile, Mrs. Nalumango said Zimbabwe’s decision to introduce transit tax of US$24, 000 to be paid by petroleum transporters transiting through that country by road is not targeted at Zambia only.

She stated that Zimbabwe may have decided to introduce the tax in a bid to raise some dollars for its domestic economy.

Mrs. Nalumango emphasized that Zambia and Zimbabwe still enjoy a cordial relationship.

“The relationship between Zambia and Zimbabwe is as we know it. Zimbabwe is our neighour and we know our history.”

“But on the issue of fuel tankers, yes we know that can complain but this is not about Zambia. This is about every tanker whether it is going to DRC or Zambia, they are being made to pay. So I believe the Ministry of Commerce here and other affected nations are finding solutions,” she explained.

Zimbabwe has introduced a new customs law which requires that transporters pay approximately US$24, 000 to be refunded at the port of exit upon compliance with transit procedure.

The tax forced Zambian fuel transporters to suspend imports through Zimbabwe, resulting in challenges at Chanida Border post and extended transit times due to the increased routing distances.

This move has affected Oil Marketing Companies who transport petroleum products by road.