Economist Kelvin Chisanga has attributed the recent appreciation of the Zambian kwacha to a combination of economic factors, including the debt restructuring deal signed between government and the Export-Import Bank of India, as well as interventions by the Bank of Zambia.
The local currency has shown a slight improvement, currently trading at around K26 against the US dollar.
Speaking in an interview with RCV News, Mr. Chisanga explained that reduced demand for the US dollar, partly due to lower import activity compared to last year, has contributed to the kwacha’s gains.
“Less demand for dollars means the country is not importing as much as it did previously,” said Mr. Chisanga.
He also cited mining tax obligations as another contributing factor, noting that limited dollar availability on the market has indirectly supported the local currency.
However, Mr. Chisanga cautioned that the appreciation should not be interpreted as currency stabilization, as there are no strong policy measures currently in place to sustain the kwacha’s strength.
He added that stability in energy supply remains one of the few fundamental factors that could support long-term kwacha stability.
By Christabel Kamunu
