• It is noted that the Kwacha lost some gains in terms of performance against major convertibles such as the dollar the past two weeks.
• The losses are minimal.
• This minimal loss of gain could be attributed to the fact that the world is anticipating for a global recession.

The Kwacha has continued to lose minimal value against key convertibles such as the United States dollar, trading at K15.63 and K15.94 per US dollar as of Friday, September 30th 2022.
According to an Economist, losses in the Kwacha in terms of performance have been observed for the past two weeks.
Emmanuel Zulu however told Money FM News in an interview that, the losses are very minimal considering that the currency was previously trading at K22 per US dollar.
“In analyzing the performance of the Kwacha for the past two weeks, it is noted that we have lost some gains in terms of performance against major convertibles such as the dollar. The previous month we were trading around 15.3 and K15.5 but now we are around 15.6 and 15.8 somewhere there,” Mr. Zulu stated.
“These are minimal losses considering where we are coming from, especially that we are coming from a high of K22 per US dollar so the Kwacha really depreciated and the confidence that it has gained is attributed mostly to the IMF bailout package and the debt restructuring process that is still in place in terms of negotiations.
He attributed the loss of gain to the anticipated global recession and the hike in interest rates in Western countries where Zambia gets most of its investors from.
“So probably this minimal loss of gain could be attributed to the fact that the world is anticipating for a global recession and also the hike in the interest rates in western countries where we get most of our investors from I think has also contributed to this minimal loss.”
“We know that investors would want to invest in countries where the yield will be very high so they would rather choose to invest in countries where the interest rates are high, so in Zambia currently I think what is also the uncertainty surrounding the debt situation in terms of the restructuring,” he said.
Meanwhile, Mr. Zulu expressed concerned that the country’s debt restructuring process has taken long, noting that there are some investors that are looking forward to see what sort of relief will enable the country to achieve its growth targets.
“So the restructuring process has taken a bit longer. There are some investors that are looking forward to see what sort of relief the country will have that is going to enable it achieve these growth targets and ensure that it continues on the path of macro-economic stability. So there could be investors that are still holding back because of unconfirmed reports on the restructuring of the debt that is going to see how Zambia’s fiscal stance is going to be,” he added.
The local unit has been the world’s best-performing currency against the US dollar for much of this year.