• The appreciation of the Kwacha can be attributed to government pumping in more money.
• This is to ensure that the Kwacha does not experience a free fall.
• Companies are also making their provisional income tax payment.

An Economist has attributed the appreciation of the Kwacha to the inflow of Foreign Exchange (FOREX) into the country resulting from quarterly income tax payment by multi-national entities.
Speaking in an interview with Money FM News, Dr. Lubinda Habazooka said this is because companies make their provisional income tax payment using Forex, thereby increasing the inflow.
Dr. Habazooka further noted that Bank of Zambia’s continued injection of US dollars into the market has also contributed to the current Kwacha gains.
“The appreciation of the Kwacha can be attributed to government pumping in money to ensure that the Kwacha does not experience a free fall and also companies had a chance to make their provisional income tax payment so they change Forex to be able to make their income payments.”
“So we have experienced some inflows of Forex into the country. We hope that this trend continues because inflation in Zambia is exchange rate dependent,” Dr. Habazooka stated.
Another Economist Rita Mkandawire said the current Kwacha gains are as a result of the good will from the recent visit of the United States Vice President Kamala Harris.
Ms. Mkandawire stated that the expenditure by Ms. Kamala’s entourage increased circulation of dollars in the economy, thereby strengthening the Kwacha.
“Whenever the visit is done, they have to pay for hotels and other things, so just that kind of expenditure has also increased circulation of dollars in the economy. But then I feel that sometimes what happens is sentiments also just have a certain effect on business.”
“When everybody says the dollar is dropping, people can get anxious. Even the positive market sentiments, what I see is that everybody is rushing to sell their dollar and that is increasing the value of the Kwacha because then there is less demand for the green back but more demand for Kwacha,” she noted.
The Kwacha is currently trading at K18.63 Ngwee and K19 on the bid and offer respectively.