As of February 17, 2026, the Kwacha was trading between K18.23 and K18.58 against the US dollar, reflecting continued strong performance.
Speaking during the joint FNB Zambia and American Chamber of Commerce in Zambia Economic Review Breakfast in Lusaka, Dr. Musokotwane warned against unrealistic expectations that the Kwacha could reach parity with the US dollar.
He explained that an exchange rate of one Kwacha to one US dollar would distort incomes and purchasing power in a way that does not align with Zambia’s economic fundamentals.
“Imagine for a moment that we got to one Kwacha equal to one dollar, with your salary of, say, K20,000 per month, in one go, your salary is worth US$20,000 per month. That would be a very strange country because there are not many countries in this world where you have a salary of 20,000 dollars per month,” he said.
Dr. Musokotwane noted that such an appreciation would likely trigger excessive demand for foreign currency, as consumers would rush to import expensive goods, rapidly depleting US dollar reserves.
“Knowing us in Zambia, everyone now wants to import a Mercedes Benz. So what happens next? Of course, we go to the banks to say, I want US$100,000, US$20,000 to buy a Mercedes Benz, and very quickly, the dollars run out,” he added.
He further pointed out that exporters would suffer if required to convert foreign earnings at an artificially strong exchange rate, undermining competitiveness.
The minister stressed the importance of balancing the interests of importers and exporters while safeguarding overall economic stability. He also commended the Bank of Zambia for effectively managing the foreign exchange market within a liberalised framework.
Dr. Musokotwane emphasized that Zambia’s long-term economic growth will depend on expanding exports rather than relying heavily on domestic consumption.
Fear not ! its a chance for importers to fill their warehouses to capacity and reap the benifits after elections when the zmw returns to it’s realist rate
the rate now is politicall influenced as is loadshedding
A one eyed view of the appreciation. Someone pointed out the Kwachas gain was due to incompetence by Donald Trump. He won’t last long so what will we do if the dollar rebounds? Clever ministers try and stock some gold
Ba Musokotwane keep your academics in your office. Why start teaching us basic econ? We just want cheaper mealie meal and bread and chibwantu