• The Kwacha has in the past week depreciated, it’s now getting almost to the K16 mark.
• Most of the countries’ demand for oil has increased, they are also trying to put up reserves for their nations.
• That demand for the US dollar has depressed the gains that were previously recorded by the Kwacha.

The Zambian Kwacha has in the past months shown some form of stability, trading around K15.90 and K15.60 ngwee.
However, in the past week, the local unit has lost a bit of strength against the United States and it is now getting closer to the K16 mark.
As of Tuesday 11th October, 2022, some commercial banks were quoting the currency at K15.66 ngwee and K15.97 ngwee respectively.
According to an Economist, the anticipated global recession may affect the performance of the Zambian Kwacha in the coming weeks.
Emmanuel Zulu stated that this is due to the increased demand for oil by most countries, which is also resulting in high demand for the US dollar on the interbank market, thereby depressing the Kwacha gains that were previously recorded.
Mr. Zulu told Money FM News in an interview that the sentiments that are coming with regards to the unsettled Eurobond are sending a bit of shivers in the investors, hence this is also affecting the Kwacha’s performance.

“As the world is also at threat of the global crisis, the depression that is anticipated and global inflation. We have seen that most of the countries’ demand for oil has increased, they are also trying to put up reserves for their nations, so that also has triggered demand for the US dollar on the Interbank, and also on the international market you see that there is increased demand for oil.”
“So that demand for the US dollar has actually depressed the gains that were previously recorded by the Kwacha and also the sentiments that are coming especially regarding the unsettled Eurobond, I think its sending a bit of shivers in the investors and also that is affecting the performance of the Kwacha. The Kwacha has in the past week depreciated, it’s now getting almost to the K16 mark, from K15.20 ngwee and K15.30 ngwee. So that is a threat that we are seeing may actually affect the performance of the Kwacha, it’s because of the anticipated global recession,” Mr. Zulu explained.
He further said going forward, the Kwacha might see a lot of pressure going forward because most countries are trying to brace themselves for the anticipated global recession by putting up reserves, thereby increasing demand for the US dollar.
Meanwhile, Mr. Zulu appealed to Zambia’s Creditors to speed up negotiations for debt restructuring so as to remove the negative speculation that is beginning to spread, as a result of the delay to conclude the process.
“The relief that Zambia is seeking from the Creditors needs to come early, as soon as possible because the anxiety that is gripping the outcome of the negotiation of the restructuring process are not good for the performance of our currency.”
“So that is also putting a bit of pressure on the Kwacha, which is not a good sign so we need to speed up these negotiations and appeal to the Creditors to ensure that the relief is given as speedily as possible so that we remove that negative speculation that is beginning to spread,” he said.