The Editor Zambia
Tonse Alliance presidential candidate Brian Mundubile’s recent dismissal of Zambia’s record foreign exchange reserves may make for an appealing campaign soundbite, but it reveals a fundamental misunderstanding of how a modern economy functions.
Mundubile questioned the value of the country’s US$6.5 billion in foreign exchange reserves, asking why the government cannot immediately pay farmers, contractors, and suppliers if such money exists. 
He likened the reserves to a person with money in the bank who cannot pay rent or school fees. It is an analogy that misses the point entirely.
As economist Professor Lubinda Haabazoka who understands economics better than Mundubile explains, foreign exchange reserves are not government spending money.
They are strategic national assets held by the central bank to protect the economy from external shocks, stabilise the exchange rate and ensure Zambia can continue paying for critical imports such as fuel, medicines, fertilizer and industrial equipment.
To suggest that these reserves should simply be spent on routine domestic obligations is akin to arguing that a family’s emergency savings should be exhausted to pay everyday bills.
Doing so would leave the household dangerously exposed when a genuine crisis strikes.
The same principle applies to nations.
Countries build foreign exchange reserves because they serve as economic insurance. They provide confidence that the country can withstand global financial turbulence, falling commodity prices, droughts, or disruptions to international trade.
Without adequate reserves, currencies come under pressure, inflation accelerates, and the cost of living rises sharply.
Ironically, the very hardships Mundubile speaks about would likely worsen if Zambia depleted its reserves indiscriminately.
Professor Haabazoka is clear that strong reserves are among the most important indicators of macroeconomic stability. They reassure investors, international lenders, and trading partners that Zambia can honour its obligations and maintain financial discipline.
That confidence matters. It attracts investment, supports job creation, and helps reduce borrowing risks. No serious economy celebrates dwindling reserves; nations work tirelessly to build them because they strengthen long-term economic resilience.
Equally misleading is the suggestion that the reserves may not even exist.
Foreign exchange reserves are not figures politicians simply invent. They are reported using internationally recognised standards established by the International Monetary Fund (IMF) and are scrutinised by international financial institutions, correspondent banks, auditors, and global investors.
Any attempt to fabricate such data would quickly be exposed through international financial reporting systems. This makes the claim more political than economic. None of this means the government should ignore concerns over delayed payments to farmers, contractors, or suppliers. Those are legitimate fiscal management issues that deserve attention. But they are entirely separate from foreign exchange reserves.
The government expenditure comes from the national budget and revenue collections. Foreign exchange reserves belong to the country’s monetary defence system.
Confusing the two is like demanding that a central bank empty its vaults every time Treasury faces cash flow pressures.
The distinction is neither academic nor trivial—it is the foundation of responsible economic management.
Ordinary citizens benefit from strong reserves even if they never see the dollars themselves. Stable reserves help support the value of the Kwacha, reduce imported inflation, and ensure continued access to essential goods.
They also provide confidence during times of global uncertainty when weaker economies often experience currency collapses and shortages.
Political campaigns often simplify complex economic issues. However, Mundubile should know that leadership demands more than catchy comparisons.
It requires an appreciation of the institutions and policies that protect a nation’s financial future.
Rather than condemning Zambia’s record foreign exchange reserves, they should be recognised for what they are: a powerful symbol of economic resilience and prudent financial stewardship.
They are not idle money sitting in a bank account waiting to be spent. They are Zambia’s financial shield against uncertainty—and one of the strongest indicators that the country’s economic foundations are becoming more secure.
