Can Zambia’s Kwacha appreciate to K15 per […]

Can Zambia’s Kwacha appreciate to K15 per US dollar? This question has attracted attention from financial analysts and the public alike, as the local currency posted a robust 14.8% gain against the dollar in the first quarter of 2026.

At the Bank of Zambia’s (BoZ) first quarter 2026 media briefing, Governor Dr. Danny Kalyalya announced that the Kwacha appreciated by 14.8% against the US dollar in Q1, a surge attributed to robust inflows from the mining sector and foreign financial institutions.

Despite the local currency currently trading at K18.9 per US dollar, financial experts are optimistic that continued positive performance in key economic indicators could see the Kwacha appreciate further, potentially reaching K14 or K15 per dollar.

 During the briefing, the Zambian Business Times (ZBT) asked whether this appreciation trend could be sustained, considering that inflation dropped to 6.8% in April and is projected to remain within the central bank’s 6–8% target band for the next eight quarters.

 In response, Dr. Kalyalya emphasized that exchange rate stability depends on more than just supply and demand. “Our job is to create a conducive environment by managing inflation within the 6–8% target band, keeping the budget on track, and above all, increasing export earnings, which is a reliable way to earn foreign exchange,” he stated.

Dr. Kalyalya noted that growth in non-traditional exports, such as avocados, chili, and beef, is vital to increasing forex inflows. “If more players take advantage of non-traditional exports, it will help boost foreign exchange receipts,” he said.

He added that the central bank’s Export Proceeds Tracking framework, introduced over two years ago, has improved visibility on export earnings. “This framework has provided important data on who is exporting, addressing the issue of whether export proceeds are actually returning to the country,” Dr. Kalyalya explained.

Article by Justin Phiri