Kalyalya’s return to BoZ cheers experts
STAKEHOLDERS have hailed the appointment of Denny Mr Kalyalya as Bank of Zambia (BoZ) Governor indicating that it will bring back independence at the central bank.
According to sentiments, Dr Kalyalya’s presence for the second time, would boost confidence on the international market and act as a key equaliser to stabilise economic prospects.
Dr Kalyalya's appointment comes at a critical time when Zambia's fiscal position remains fragile amidst widened debt and dislocated monetary policy.
This is according to Economic Association of Zambia (EAZ) National Secretary, Mutisunge Zulu.
Mr Zulu stressed in an interview that monetary policy stability would remain critical in the midst of a debt restructure, quest for an International Monetary Fund (IMF) deal and appetite for economic recovery,
Dr Kalyalya’s contract was terminated in August 22 last year, barely three days after the penultimate rate decision meeting of 2020 that cut rates 125 basis points to the lowest ever at eight percent.
Until his appointment, Deputy Governor Operations, Francis Chipimo, was acting governor after the then Governor Christopher Mvunga’s resignation earlier in the month.
"It brings back independence to the central bank let alone a confidence boost from multilateral partners that were not so please with his shocking exit," Mr Zulu said.
According to Mr Zulu, Dr Kalyalya is one of Zambia’s most objective governors that demonstrated independence in the most difficult era amidst economic turbulence and was consistent in flagging fiscal dislocation from monetary policy.
This, he explained, was established in the monetary policy communiques at every rate decision meeting Dr Kalyalya chaired. Barely eight months after exiting the central bank, DR Kalyalya was named CoChair of the International Development Associations Twentieth Replenishment (IDA20) by donor and borrower country representatives of the World Banks special wing set to launch in April 2021.
And Social economist Kelvin Chisanga said the re-appointment Dr Kalyalya comes in as key equalizer to helping in stabilising economic prospects which are being championed by the new Government.