The president of Zambia, Edgar Lungu, took an abrupt decision last week, he removed Denny Kalyalya, the country’s central bank governor, from his post. 

The recent decision by the Zambian government ignited a spark of fear within the institution, as now it appears that the government is planning to end the independence of the country’s institution.
<h2>Central Bank’s New Governor</h2>
Notably, soon after Kalyalya was fired, Christopher Mvunga was given his post in the central bank. And as per the <a href="https://www.msn.com/en-za/news/other/zambia-bonds-kwacha-slump-after-central-bank-governor-fired/ar-BB18k3NS" target="_blank" rel="noopener">report</a>, Lungu and the country’s central bank new governor has very close ties with each other.

As soon as the news about Kalyalya’s removal outbroke in the country, it sent shockwaves around the financial market. 

The market noticed that the value of the country’s currency, Kwacha, drop by 0.7 percent against the greenback. Now, as per the report, the value of one US dollar equals to 19.20 kwachas.

It is to be noted that since the year 2020 has started, the value of Kwacha has come down by over 25 percent.

The report has further mentioned that the Zambian President believes that in the year 2020, the country’s economy will dwindle by 4.2 percent.
<h2>Zambia’s Revenue Inflow Suppresses</h2>
According to the experts in the country, like every other country in the world, Zambia’s economy is also affected by the outbreak of COVID-19. Now it appears that President Lungu is planning to spend more money to fight with this global pandemic, therefore, he decided to remove Kalyalya from his post.

The report also indicated that currently the inflow of the country’s revenue has been suppressed because of the economic closure.

Further, it has been notified that if the President gets successful in undoing the negative effects of the COVID-19, then there would be a chance for him to again win the presidential elections, which are going to be held in the year 2021.
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Zambian President Fires Central Bank Governor, Country’s Currency Value Drops

The president of Zambia, Edgar Lungu, took an abrupt decision last week, he removed Denny Kalyalya, the country’s central bank governor, from his post.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Zambian President Fires Central Bank Governor, Country’s Currency Value Drops

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