Zambia News

Zambia Kwacha (ZMW USD) Quote, News: Currency Losing Streak Not About to End

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.

“In an attempt to reduce the volatility and devaluation seen during large parts of 2020, the Bank of Zambia has introduced some curbs on local foreign-exchange pricing which has helped to stem excessive volatility,” David Willacy, a senior foreign-exchange trader at StoneX Group Inc. in London, said in an emailed response to questions. “It is likely the kwacha will continue to depreciate in the absence of any new large dollar inflows, or debt agreements from the government.”

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