• The Kwacha has been resilient and shown some good level of stability.
• It has continued to trade below the K17 mark against the US dollar.
• It has also been stronger than the South African Rand in the past weeks.

The Zambian Kwacha has maintained its resilience against major convertible currencies, as it has been showing some good level of stability in the past weeks.
The local unit has continued to hold steady against the United States Dollar trading in the range of K16.27 ngwee to K16.60 per one US Dollar.
And an Economist noted that the local currency has continued to trade below the K17 mark against the United States dollar and has been stronger than the South African Rand.
Emmanuel Zulu told Money FM News in an interview that the Kwacha’s gain in strength against the Rand provides an opportunity for importers to import goods at a relatively lower cost as Zambia imports most of its consumables from South Africa.
Mr. Zulu however said there is still need to have lasting solutions that can help the country reduce imports or strengthen the value of its exports in order to sustain a stronger currency.
“We still remain vulnerable to external market dynamics that have a strong influence on the performance of the Kwacha. The Russia-Ukraine war is still on going and fuel is still something to talk about in terms of the prevailing prices which can actually shoot at any time with the growing demand,” Mr. Zulu said.
And Mr. Zulu observed that the current increased capital inflows and financial support from corporate entities and institutions such as the World Bank have played a key role in the Kwacha’s positive performance.
He further noted that Zambia’s hosting of the just ended African Union (AU) Summit, could also have played a minimal role but it’s not something that the country can rely on.
“We note that most companies have pledged to increase their investment in the country especially in the mines, of course we have heard First Quantum Minerals, and we have also heard companies increasing their investment.”
“We also note that there has been increasing support from the Brentwood institutions especially in areas to do with social security, we have seen them giving funds to Zambia, we recently received above US$150 million for Social Cash Transfer and this should come as a plus on the fact we have managed to maintain positive relationships with institutions can be of help to Zambia especially in this time where we are still dealing with this debt crisis,” he stated.
If the current appreciation of the Kwacha is sustained, it will help retain confidence in the economy leading to an economic boost.