Zambian Currency’s 42-Day Losing Streak Not About to End
- Central bank introduced rules to try reduce kwacha volatility
- Depreciation comes even as copper prices have soared
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The Zambian kwacha’s 42-day record losing streak against the dollar is set to continue until the government deals with its $12 billion of external debt, despite official attempts to support the beleaguered currency, according to StoneX Group Inc.
A copper price that has climbed to almost eight-year highs has failed to stem the tide after Africa’s second-biggest producer of the metal became the continent’s first pandemic-era default. It failed to make a $42.5 million payment on a $1 billion Eurobond in November, and the government stopped servicing most external commercial debt.