Kwacha Struggles Amid Strong Demand for Hard Currency
The Zambian Kwacha continues to face pressure against major currencies, struggling to maintain stability amid high demand for foreign exchange.
Economic expert Kelvin Chisanga attributes this depreciation to increased import-driven activities, national debt repayments, and ongoing drought challenges affecting key economic sectors.
“The hard currency is presently in strong demand, outweighing supply factors. The seasonal surge in forex demand is putting immense pressure on the Kwacha,” Mr. Chisanga explained.
He noted that the drought’s economic impact is further weakening the local currency, disrupting agricultural productivity and foreign exchange inflows. However, despite these headwinds, Zambia’s economic outlook remains positive, with hopes pinned on the revival of the mining and agriculture sectors to stabilize the currency.
“This year’s ability to withstand external shocks demonstrates the country’s commitment to economic recovery, especially as overheating elements begin to ease,” Mr. Chisanga added.
