Zambia’s Kwacha Strengthens on Higher Copper Exports and Improved Fiscal Discipline
Rising Mining Exports Strengthen the Kwacha as Confidence Grows in Zambia’s Economic Policy
Zambia’s mining exports have driven a surge in foreign exchange inflows, boosting demand for the Kwacha and strengthening the local currency against the US Dollar. As of the latest trading session, the Kwacha stood at K21.70 for buying and K22.13 for selling.
Trade experts noted that the increase in copper output—the country’s top export—has played a major role in the currency’s appreciation. They also credited the government’s consistent fiscal management and clear economic direction for improving investor confidence.
President Hakainde Hichilema’s administration has made stable mining policy a central pillar of its economic strategy, aiming to attract investment and increase production. Analysts say this approach, coupled with tighter control over public spending, has helped ease inflationary pressures.
September’s inflation figures confirmed this trend, marking the second consecutive monthly decline. Food inflation, a key indicator affecting household budgets, dropped from 14.9% in August to 14.6% in September.
Economists added that the Kwacha’s recent gains reflect not only stronger mining performance but also a broader vote of confidence in the government’s fiscal and monetary policies.
“The appreciation of the Kwacha is not just about copper—it shows that confidence in Zambia’s economic management is steadily growing,” one analyst said.
SOURCE:openzambia.com
