Zambia’s currency is on track for a world-beating year as investors bet on the new government’s chances of securing a bailout deal with the International Monetary Fund and negotiating a debt restructuring.
The Kwacha has advanced 27% against the dollar this year, largely on the back of optimism over the August election victory of Hakainde Hichilema. That’s the currency’s best annual performance since 2005, and only the Seychelles rupee has fared better this year. Both were among the three worst performers in 2020.
Zambian President Hichilema’s government is trying to rework as much as $17 billion in external public debt. He needs the IMF’s endorsement to advance talks with creditors ranging from holders of $3 billion in Eurobonds to $5.8 billion owed to China. Finance Minister Situmbeko Musokotwane plans to conclude negotiations by the middle of 2022. The country became Africa’s first pandemic-era sovereign defaulter last year, and hasn’t serviced most dollar debt since.
The currency of Africa’s second-biggest copper producer has also been buoyed by near-record prices for the metal, which makes up more than 70% of export earnings and helped boost the 2021 trade surplus to K73.4 billion ($4.4 billion) through November, compared with K41.8 billion a year earlier.
Source: News 24
ok. From being one of the worst performers to among the best performers, in 4 months – whichever way you look at this statement – politics aside – this is a positive change.
Obviously there is still a lot of work still to be done. Law enforce is one area of concern, investigating wings needs capacity building, govt communication still lacking, etc.
Politically influenced currency gains for short term Political points.
Best performing curency but commodity
Prices going up including fuel and electricity.How are Zambians benefitting?
HH’s election victory brought investor and Kwacha optimism after 10yrs of PF taking us wandering thru the economic desert.
“That’s the currency’s best annual performance since 2005, and only the Seychelles rupee has fared better this year. Both were among the three worst performers in 2020.“
You talk of 2020, what about the year before that? Then it must not have been the worst performer. A change in what appears to be a promising government does bring some assurance to investors but wait until they feel duped, your currency will come falling like some monstrous kludges of ailments. A good performing currency’s story is not told in newspapers and online media but one that resonates with the poor. What’s the price of essential commodities Mr. President? Answer that question with respect to your claim of good performing currency.
#3 There are more questions than answers. CURRENCIES can be manipulated or genuine
This is mediocre reporting things are moving from bad to worse no direction in most cases fixing the poor unlike fixing the economy everything has been going up this is just cosmetic
Canisius Banda come back bro… “umuchinshi we tole/ipuli, lifumo”.
Look at kwacha… enjoy as us diasporanians lose money.
I run a small business in Lusaka as a Managing Director. We have seen the economy is improving. Indeed all businesses related to ours have seen record sales including supplier. We have seen good increase in sales since September after the worst months of July and August when we were fighting for survival. October was our best Month of the year before December beat it. We enter 2022 with hope, happiness and excitement.
God bless Zambia.
Investor confidence is critical to every economy seeking recovery. Our balance sheet is pathetic going by colossal liabilities incurred through the previous useless and uncaring so-called regime. Hate it or love it,we are going to recover our precious and once vibrant economy that we experienced during Levy mwanawasa. The clique will never bounce, forever.
Well done New Down Govt..!
The best is yet to come!
Its obvious, some people are wishing the New Down misfortune.
Alas, it’s only getting better!
You better get ready even for greater things!
Well done, New Down Govt. !
I know the best is yet to come!
In 4 months, and you have scored so much?
Some people are wishing the New Down Govt. to fail.
Alas! You better get ready because these guys mean business!
More great things are on the way!
Nafuti Nafuti New Dawn Government ,your policies are already bearing fruits.
The worst is over. The only way is FORWARD!!!