Kwacha Gains Over 5% in a Week, Boosting Investor Confidence

The Zambian kwacha has continued to show strong signs of recovery and resilience in the foreign exchange market with firm macroeconomic fundamentals standing.

As of this week, the local unit is currently trading around ZMW 23.30per US dollar, reflecting a notable appreciation of approximately 0.64% on Tuesday and a stronger trajectory over the past business week.

This upward movement represents a cumulative gain of over 5% against the greenback in just seven days underscoring positive market sentiment and a return of confidence in Zambia’s macroeconomic outlook.

Year-to-date performance also shows that the kwacha has strengthened by nearly 12%, a reflection of several converging factors including enhanced fiscal discipline, continued engagement with creditors on debt restructuring, improved copper earnings and monetary tightening by the Bank of Zambia.

While the current momentum is encouraging, it remains vital to sustain structural reforms and build resilience against external shocks such as global interest rate movements and climatic risks affecting agriculture.

Going forward, preserving this stability will require concerted efforts in export diversification, export containment measures on agricultural outputs, domestic production enhancement and robust investor confidence measures.

However, a stable and appreciating kwacha is not just a financial indicator, it is a signal of national progress and economic credibility.