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Zambian Kwacha In Sharp Slump, Worst Performance Since 2020

Zambian Kwacha In Sharp Slump, Worst Performance Since 2020

The Zambian Kwacha has been in a sharp slump this quarter a situation that is triggering a rise in inflation in the southern African country, according to Bloomberg.

The kwacha weakened 12% against the dollar this quarter, its worst performance since the first three months of 2020 when investors bet that Zambia would renege on its debt obligations. Zambia became Africa’s first pandemic-era sovereign defaulter in November of that year.  The currency’s depreciation is partly due to slow progress in debt-restructuring talks with creditors. World Bank President David Malpass said last week the delays are impacting economic growth and poverty in the southern African nation. Zambia is seeking to rework $12.8 billion of foreign loans.

  1. The Zambian Kwacha Overtakes The Russian Ruble To Become the Best-performing Currency Globally
  2. Zambian Kwacha Now Stronger Than The South African Rand

Meanwhile, consumer prices rose an annual 9.9% this month, compared with 9.8% in November, interim Statistician-General Mulenga Musepa told reporters Thursday in the capital, Lusaka.

That’s the highest level since September and brings the average for 2022 to 11.1%, below the central bank’s forecast of 11.3%.

The cost of transport outpaced other price increases, Musepa said.

The uptick in inflation and the decline in the currency may persuade the Bank of Zambia to raise borrowing costs at its February meeting after maintaining the benchmark rate at 9% this year because of a downward trend in price growth.

Annual inflation has been above the bank’s 6% to 8% target since May 2019.

Food inflation decelerated to 11.9% this month from 12.1% in November while non-food price growth accelerated to 7.3% from 6.7%. Monthly inflation quickened to a 10-month high of 1.1%.

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33 Comments

Jojola@07 4 weeks ago

Zambian annual inflation is just 8% whilst in Zimbabwe it is over 250% ...the writer did not indicate the rate of the Zambian Kwacha against the US$...this is pure propanda by state owned papers to discredit efforts being made by HH.


Hanibal Lecter 4 weeks ago

rate is 1usd: 16.45 to kwacha

4 weeks ago

Rate haina basa Japanese and South Korea
currency are like 1:100 against the USD but those countries are probably in the first world.

4 weeks ago

Turkey has an annual inflation of 200% but their GDP is over usd800 billion while Zambia GDP is less than 40 billion.

Mufaro 4 weeks ago

Yeah but their police uniform looks like ****.t.

Maparamuro 4 weeks ago

Sad, our economies are never controlled internally. We have no control over our currencies as Africa. Sad sad sad.


Kong 4 weeks ago

How come no one mentioned that Zambia defaulted on it's debts which is why the Chinese canceled Zambia foreign debt.


4 weeks ago

I have been always asking myself how come Zambia is 10x less industrialized than South Africa but they claim their currency is stronger than the USD.


SeeSee 4 weeks ago

To what extent is this going to affect an ordinary Zambia and the Zambian Economy in general?


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4 weeks ago

IT REMAINS BETTER THAN ZIM WHICH USES A GHOST CURRENCY ARATIJIYESI


Revelation 4 weeks ago

Zambians don't have oil or gas and they don't make machinery or anything valuable to the world...that's why their currency will keep falling.


g 4 weeks ago

they are the world's largest copper producer

4 weeks ago

Nigerians have oil,gas and manufacturing things like war planes and vehicles but their currency is not as strong as the kwacha

o'brien 4 weeks ago

kkkkkk who told that lie. Verengai magwaro mkoma. Zambia inobura copper baba all continents vanozviziva izvozvo.

g 4 weeks ago

its only that Edgar Lungu had mortgaged all the copper to the chinese thats why they fell in that debt trap. the chinese had no option but to cancel the debt after HH came to power and started to scrutinize the agreements. the xingaz had already looted more than what they were owed

o'brien 4 weeks ago

what's wrong with their currency being stronger than Naira and rand. Hanti imimi maichemera kuti rate yanyanya our currency is losing value. Now makuti Kwacha rasimbirei. Zimbabweans we need deliverance.

@revelation 4 weeks ago

Zambia is the biggest copper producer in Africa

4 weeks ago

Harare is way better than Lusaka so I think that's a win for Zimbabwe 😁😁😁😁


Zuze 4 weeks ago

Better in what way?
When were you last in Lusaka?
Usataure nyaya dzekwausina kuswera. Lusaka is miles ahead of Harare and Zambia light years ahead of Zimbabwe

zeteuuzete-ee 4 weeks ago

Harare will always remain ahead of Lusaka.
Lusaka is a mere village and their president is a just a villager with a little bit of education

o'brien 4 weeks ago

I was in Zambia in June. kkkk mkoma u are talking about Lusaka that you saw in secondary school textbook. Go there and witness wonders. Chii chirimuHarare chine musoro. Streets full of unemployed youths, money changers and good looking vendors. Mashoko emunhu achirikuchengetwa nevabereki awataura apa. We compare production and quality of road networks. ZveJoina city ndezvepwere vanoswera torwa ma pics while big boys are working kuIndustrial site.

saint 4 weeks ago

You are the most incompetent person on Pindula my brother or sister

@Zuze 4 weeks ago

Harare got beautiful buildings than look usaka but interms of industrialization we are far behind zambia as im talking right now ndiri munzira kubva zambia now nditori mumacurves emumakuti umu kune vanoda masini manyama butsu jeans mabalman magowns ndibate h_twn deals 0784460789

citizen 4 weeks ago

Africa inofanira kungoshandisa husa ndo solution


VLAD 3 weeks ago

Or africa could have a Currency, like Euro

Moto wemapepa 4 weeks ago

kwacha Moto wemapepa unokasira kudzima isu maZimbo regai tikuudzei raive nemari yedu tichitamba mushe.


SeeSee 4 weeks ago

Matakadya kare haanyaradze mwana

o'brien 4 weeks ago

inflation in a newspaper. 11% is not even noticeable to the public. As long as the prices of basic commodities remain stable and the salaries are good zvakarongeka. Zvema statistics izvi vanozvionera mubepa. Yesterday Zimstat released some statistics saying Zim inflation dropped by 17% kkkk but izvozvi ndiani akaona life yake yachinja from that. They are just numbers. The thing is, pay the servants and control the resources, avoid corruption.


SeeSee 4 weeks ago

You are a genius, thanks

Führer 4 weeks ago

Mati madiii muchamadhinda ma trillions worse me economics dzehu ccc dzamunadzo muchasura chando pamusaka pekuramba PF


o'brien 4 weeks ago

It's fun how u say 'muchasura' as if u are not a Zimbabwean. I used to do that when i l was in Creche doing that ECD thing. I had that egocentrism, thinking everything is perfect ku side kwanku until I noticed kuti when something happens in the society good or bad, everyone is going to be affected good or bad. Politics is not football baba. Your relatives are struggling also baba visit your rural home uone. Even if u support ZANU, nhamo ndeye munhu wese.

@No name 4 weeks ago

Which war planes and vehicles are manufactured by Nigeria? Baba dont dream Learn to read world and economic literature


Nhata 3 weeks ago

Google about it Mr Nhata


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