Economy

Surging Copper Propels Zambia’s Currency to World Beating Streak

Copper

Zambia’s kwacha jumped the most since December 2019 as soaring commodity prices helped ease investor concerns about a debt revamp following default due to COVID-19.

The currency gained 5.1% against the dollar at 6.41 p.m. in Lusaka. It has advanced 13.6% this month, making it the world’s best performing currency in the period tracked by Bloomberg.

Zambia depends on copper for more than 70% of its foreign-exchange earnings, and sustained high prices of the commodity is helping boost dollar supply. Investors have also been lured by local currency bond yields of nearly 33%, with the expectation that the government will finalize a long-awaited deal with the International Monetary Fund after elections next month.

“We have seen now a number of offshore investors coming back into the market,” former Finance Minister Bwalya Ng’andu said at an election rally on Sunday. They are “playing a very active role in supporting the inflow of foreign currency.”

Copper’s record prices have been more than enough to offset a 3.6% drop in the southern African nation’s production in the six months through June compared to the same period a year earlier. Copper climbed as much 3.2%, the most since May 27 on Monday.

Credit: Bloomberg

6 Comments

  1. laban

    Those of you who are good at critisizing the GOVERNMENT , tell us something about the appreciation of our zambian currency .

  2. UPND member

    Here you have beaten us 10-0

  3. Mpabalwani

    GOD sent opportunity for our great country Zambia

  4. Masanje

    God has answered our prayers,atleast our projects will run smoothly Amen

  5. Nest

    Why do always want to politicise everything?

  6. Linos kambole

    Thanks to the pf government for making life easy for us Zambians USD will be the thing of the passed our kwacha will be back to it’s position

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