• The Kwacha has continued to depreciate largely speaking to a number of factors.
• Last week, the Kwacha depreciated by 0.5 percent compared to 0.4 percent the other week.
• The Kwacha is this week expected to continue recording losses.

The Zambian Kwacha has continued to lose strength against major currencies such as the United States dollar despite several interventions that have been made to stabilize the currency.
Bank of Zambia has been intervening in the market by offloading US dollars to moderate volatility in the exchange rate.
As at Monday 27th June 2022, the Kwacha was trading at K16.93 and K17.26 to 1 US dollar.
Economist Dr. Patrick Chileshe has attributed the depreciation of the local unit to the delayed International Monetary Fund (IMF) program.

Dr. Chileshe told Money FM News in an interview that most market players were anticipating that the program will be finalized by June month end and this has led to negative sentiments with regards to the possibility of closing in on the IMF deal, leading to high demand for US dollars, against limited supply.
He noted that last week, the Kwacha depreciated by 0.5 percent compared to 0.4 percent the previous week.
“The Kwacha continued to depreciate largely speaking to a number of factors. We have the issue of the delayed IMF program that has somehow disturbed market players who were anticipating that the program will be coming by the end of June and that has led to negative sentiments with regards to probability of closing on that end and that is pushing up demand for dollars.”
“We also have low supply on the market which is also an issue that has come up in the last two weeks. So if you look at last week, the Kwacha did depreciate by 0.5 percent compared to 0.4 percent the other week,” Dr. Chileshe said.
Dr. Chileshe added that Copper prices on the international market are also contributing to the depreciation of the currency as they have significantly dropped, trading at the lowest level since March 2021.
“Additionally, we have also seen the Copper prices on the international market also add pressure to already existing pressures. The price of copper has significantly dropped and it was trading at the lowest level since March 2021 and that was the price of US$8, 280 per metric ton, and all these factors put together do not mean well for the Zambian Kwacha and they are likely getting the Kwacha moving in the wrong direction,” he noted.
Dr. Chileshe further said the Kwacha is this week expected to continue recording losses merely because of the negative effects of delays in the IMF deal and tumbling Copper prices on the global market.
He however stated that financial market players anticipate to see a moderation in terms of the pace at which the currency is losing strength through Bank of Zambia’s intervention in the market, due to an increase in the level of reserves they are holding at the moment.
Today Tuesday 28th June 2022, some commercial banks in Lusaka have quoted the local currency at K16.95 ngwee and K17.28 ngwee.