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The Zambian Kwacha Overtakes The Russian Ruble To Become Best-performing Currency Globally

The Zambian Kwacha Overtakes The Russian Ruble To Become Best-performing Currency Globally

The Zambian Kwacha has now overtaken the Russian Ruble to become the best-performing currency in the world, as of today 1st September 2022.

The Kwacha has been on a steady growth since 24 months ago and observers attribute the trajectory to the ascendancy to power of President Hakainde Hichilema. 

The government’s spokesperson, Joseph Kalimbwe said this Thursday on Twitter:

The Zambian Kwacha has now overtaken the Russian Ruble to become the best-performing currency in the world, as of today 1st September 2022. Our country still has a long way to go, but many thanks to everyone for voting for our party. The UPND is making steady progress!!!

How the Ruble rose:

Around May, the Russian ruble was the best-performing currency despite wide-ranging sanctions imposed for its invasion of Ukraine.

i). The rise came when Russia insisted that European Union countries that purchase natural gas from Russia make payments in rubles, rather than in dollars or euros. 

ii). The Central Bank of Russia on February 8 raised its interest rates to 20% in an emergency move. This means anyone who is looking to sell rubles for dollars now has an incentive to hold the Russian currency, which would in turn cushion the fall in the ruble.

iii). The Russian government forced export-focused businesses to convert 80% of their foreign currency into rubles triggering significant demand for the Russian currency, thus also helping to prop it up.

Zambian Kwacha’s rise is attributed to:

a). Restored mining bullishness –  In addition to political stability, the rise of the Kwacha is attributed to Mining which has long been a cornerstone of Zambia’s economy. The global copper market is tightening, so new mines are difficult to find. Consequently, the Zambian kwacha has been in high demand, as revenue from the country’s exports increased by 14.2 per cent to $5.9bn in 2021. According to the Bank of Zambia, copper contributed $4.4bn to the country’s total earnings that year.

b). Massive debt relief – Zambia’s dollar debt, including arrears and state-owned company liabilities, rose to $17.3 billion by the end of last year. On July 30, Zambia’s official creditors, led by China and France, agreed to negotiate a restructuring of their debts. Consequently, Zambia got final approval from the International Monetary Fund for a $1.4 billion bailout. Following this news, the Zambian kwacha advanced to its highest level.

c). Increased forex supply – Economist Patrick Chileshe says the other reason why the Kwacha has been gaining against the US dollar is increased forex supply. To guard against the volatility in the exchange rate, the central bank was offloading an average of $13 million per day in June. He said:

We have seen the Kwacha gain strength, and that was driven by increased foreign exchange supply to the market by the Bank of Zambia which was consistent in the market, whereas the demand for US dollars has been low and that led to the appreciation of the Zambian Kwacha.

The Zambian kwacha is the best-performing currency in the world against the US dollar, rallying over 18.5% from January 22 to September 1.

While continental peers South AfricaZimbabweNigeriaGhana, and Kenya have been unable to control rising inflation and plunging currencies, Hichilema’s government has managed to reduce the inflation rate from 24.4% in August 2021 to 9.7% in June this year.

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41 Comments

HopeFul 2 months ago

My fellow Zimbos.... read and learn. Change is gonna come.


---- 2 months ago

Of course, by not attacking their own citizens they didn't get sanctioned in the 1st place, usanyepedzere kudzungaira. Zimbabwe futi haisiriyo yeah iri under sanctions if you didn't know asi ndiyo yega irikutambura so funga futi or kungosiyana nazvo.

ZIMBA🇿🇼Original 2 months ago

Zambians didn't didn't invited sanctions for their nation in the first place

Solliy b the great 2 months ago

Change haimbofi yauya takagara vana veZim lets vote for change maZambians ava kudada nenyika yawo...isu tikuponera kunana South Africa

Klux kk 2 months ago

Those are real leaders who have the people at heart, not those whose hearts are full of thuggery, thievery child molestation & rape.


,,,, dott 2 months ago

Zim tikurasikira papiwo


Billboard Of Public Opinions 2 months ago

Stealing of votes, too much corruption by.

MuPfungwe Chaiye 2 months ago

Vamwe muchingoudzwa zvekurwa hondo dzimwe nyika dzichibudirira. Zvinobva zvaita kunge Zimbabwe ndiyo yega yakarwa hondo nxaaa fokoro mhani


Mafirakureva 2 months ago

Ndokugona kutonga uku. Economics made simple, not zvenyu izvi zve Ginyanomics ana ed Shweeee.

Sorry ZANU chaps, you are out of your depth. Please leave the stage and go to Old People's Homes


Billey 2 months ago

All we need as Zimboz is to fight for change, Zimbabwe is not very far from being an upper middle income society, vote CCC for real change


jj 2 months ago

saka ngaapinde haake mkomana CCC Chamisa Nelson chete chete

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Soyuz > Crew Dragon 2 months ago

Just wait until mari yavakakwereta yakapera . They will be back to square one


---- 2 months ago

Hameno kuti kusada kunzwisisa kana kuti kusaziva. Parikutaurwa zveDebt Relief umwe arikutaura zvekupera kwemari yakweretwa...sure, I'll repeat this one day but "the only thing worse than not knowing, is not knowing whilst one truly believes they know" and that's our government and it's supporters, hapana zvozivikanwa other than kuti tinoziva ndosaka zvese zvichizoenda kuViolence, brain inenge yaaConfused nemaFacts

@dragon 2 months ago

usarwadzuwa

🤪🤪 2 months ago

vana vybes vezanu murikupi, onaiwo z irikuitwa panext door, kwete zvenyu zvekuita umbavha izvo. hezvo Zimbabwe is now a laughing stock


worried 2 months ago

Meanwhile....The gvt is planning on bringing back green bombers!! Why was I born in Zimbabwe veduwe


Kkkk 2 months ago

Kkkk ndaseka nhasi

2 months ago

Zambia is now performing well, Zimbabwe always talking abt war yet some countries are developing.


saikorojist 2 months ago

HH🔥🔥🔥🔥


Blacking 2 months ago

zvobhadhara kana zvisina mbavha mukati.


zanu idu.zvi 2 months ago

ehe vamwe varikuenda isu tichingoimba hondohondo kkk


Gafa 2 months ago

Zanu chikwambo vakangogarira progress iwe wakaonepi gvnt inotuma masoldier kuuraya macitizens vasina kana chombo zvacho.Mbuya nehanda hee kuhondo hee ivhu redu makabvepi neivhu.Kupenga uko

kkkkk 2 months ago

zvipfuwo zvaingotorwa mudanga pasina kutenderena, kutosarudza zvakagwinya kani

Kule Kule 2 months ago

apa hakuna chaiitwa kuzhe kwekubata vana sisi chibharo nekudhla huku dzana mai nembudzi dzana mbuya

Mupostori 2 months ago

Apa wonzwa murume mukuru achiti tichangotonga tichingotonga. Pane kuti atungamirire chaari kuda kutonga. Kutonga kuti Sikhala acharirwe mu Chikurubi. Kutonga kuti Pfurai vanoita demostrate. Kutonga kuti dzingai mabasa varikuti mari haisi kutikwanira. Kutonga kuti anoba mari ye Cottco ngaapiwe bail apiwe passport yake aende kunodya ma allowance e Parliament kunze kwenyika. Shame on this Second Republic. God is watching and will strike at the right time. Qaddafi aizviita equal to God. Kamuzu Banda na RG Mugabe thought they own Malawi and Zimbabwe. Same Pastors and Prophets who used to tell Mugabe that he was Son of God are the same who are telling ED the same. Don't say i did not warn you


Celestial 2 months ago

Honaiwo


Yoweeeeee 2 months ago

We will never develop nor progress as long as we fanatics like George Charamba and Nick Mangwana. The country's economy will ever slip southward providing we led by lunatics in the mould of General Chiwenga and his bandleader ED. Whilst we shall watch enviously Zambia,Malawi, Mozambique outdo us in every aspect as long as this ungodly Zanu Pf party is at the helm. The Vene Vayo vampires will voraciously and viciously destroy everything they touch until we swim on sewages,drive in potholed roads, and escape in our thousands to the hands of Dudula operatives.


2 months ago

Zimbabweans in South Africa move to Zambia it seems there is life there


Viva CCC 2 months ago

Hichilema and Chamisa
Same whatsapp group
VOTE Chamisa for jobs and economic growth


Machiavelli 2 months ago

@Yoweeeee, while under normal circumstances I would agree with you, but please let me disagree. The forerunner to the vinyl records was the Gramophone, whose inscription was "His Masters Voice".

Jojo Charamba and Ndabamaningi Mangwana are only mouthpieces of their Masters. So instead of targeting them, we should put the blame where it rightly belongs. Numero Uno. Number One. The Top Guy. (and more appropriately The Top Team, especially The Puppeteer, The General who engineered the coup)

Otherwise the rest of your treatise stands.


dispenser 2 months ago

what a marvelous President . when wld God here our cry


😎 2 months ago

MaZanu pf abva apinda musaga 😂😂😂😂


Sarogate 2 months ago

Zimbabwe is next under the leadership of Chamisa.


Gwedu 2 months ago

Hello ED?


gamba 2 months ago

currency inogona kungo Simba asi vanhu vatema vemo vasina ma investments futi


G 2 months ago

Gamba usarwadziwa iwe uri kuti currency ikusimba neyi shandisa brain mhani currency yakambosimba isina zvikuitika hre munyika chakanak chakanaka kwacha yajutenga than ma bond


Sorojena 2 months ago

People of the accursed world, government issues need a vibrant citizenship check not a authoritarian leadership that survives on populism. Zimbabwe 🇿🇼 is capable of doing even better if we stand up against Zanu pf Zanu pf is our own self inflicted sanction that we have to remove with urgency


Sorojena 2 months ago

These are the blessings only entitled to purely democratic governments. Keep it up HH, you are the shining example of African Renaissance.


mutadza 2 months ago

kana command agriculture nepfumbudza havana kumboita


okorongo 2 months ago

15 billion ikadzoka zvedu zvinoita


WILLIAM SONBOY CHINEMBIRI 2 months ago

As long as Zimbabwe keeps ZANU PF in power nothing is going to change. The youths of Zimbabwe, where are you ?

Zambia of all countries in the world has managed to have the best performing currency in the world. This is the best situation about the change of government.

Zimbabwe has gold, diamonds and platinum, all good minerals. But Zimbabwe's currency loses value against the American dollar every month.

Zimbabwe has mispostings in many ministries in its governments. Zimbabwe government has not been performing well, but we have not have a ministry portfolio reshuffle !!!!!

[ MY BELOVED ZIMBABWE, WHERE DO WE GO FROM HERE ? ].

[ CITIZENS, YOU MUST NOT WATCH YOUR COUNTRY SLIDE INTO OBLIVION ].

VOTE ZANU PF OUT AND REPLACE IT WITH CCC ].

Yours faithfully
William Sonboy CHINEMBIRI
[ THE BUSH LAWYER ].



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