Zambia’s Kwacha Heads for Best Year Since 2005
- Investors are backing new president’s debt restructuring plans
- Zambia has also benefitted from soaring copper prices
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Zambia’s currency is on track for a world-beating year as investors bet on the new government’s chances of securing a bailout deal with the International Monetary Fund and negotiating a debt restructuring.
The kwacha has advanced 27% against the dollar this year, largely on the back of optimism over the August election victory of Hakainde Hichilema. That’s the currency’s best annual performance since 2005, and only the Seychelles rupee has fared better this year. Both were among the three worst performers in 2020.