Kwacha Breaks Barriers on Strong Dollar Inflows
The Zambian kwacha recorded a notable appreciation in early February 2026, strengthening to around K18.70 per US dollar from levels near K20.00 per US dollar, representing an appreciation of approximately 6–7 percent.
This movement reflects a combination of supportive fundamentals and favourable market dynamics.
The key fundamental pillar behind the kwacha’s positive direction has been improved foreign-exchange liquidity, largely driven by strong copper export inflows.
Higher export receipts and consistent repatriation of foreign earnings have increased the supply of US dollars in the domestic market, easing FX pressures and supporting a more balanced exchange rate environment.
From a technical perspective, the USD/ZMW exchange rate has remained in a clear downward trend, characterised by successive lower highs and lower lows.
The decisive break below the K19.00 psychological support level confirmed trend continuation, with this level now acting as resistance.
Momentum indicators suggest the appreciation has been orderly and technically supported, with K18.70 forming immediate support.
Overall, the kwacha’s performance reflects a convergence of stronger FX inflows and confirmed technical momentum, supporting currency stability in the near term.
