Africa's best-performing currency since the start of 2024.
Zambia's kwacha has rallied 13.8% to 22.8 against the dollar since the start of this year.
Why is this important: The country's central bank, the Bank of Zambia, continues to tighten its monetary policy by raising the monetary policy rate by 150 basis points to 12.5 per cent to steer inflation in the right direction, resulting in a strong rally compared to the dollar, according to LSEG data and making it the best performing Africa currency so far.
The bottom line: Most African countries, like Nigeria, are experiencing significant currency devaluation as they implement economic policies to grow the economy. Zambia's primary foreign exchange earner, copper, has experienced reduced output over the years and does have its challenges, such as the ongoing debt restructuring talks. To build on the economic reforms the talks need to resume urgently to prevent any devaluation of Kwacha and slow the inflow of investments.
