When it was revealed that the International Monetary Fund (IMF) had authorized the $1.3 billion bailout for the country, the Zambian kwacha, which is currently trading at K15.40 for every dollar, became the world’s best-performing fiat currency. The kwacha is now the best-performing currency in the world, surpassing the Russian ruble with a gain of approximately 18.25% so far this year.
According to a Bloomberg report, the kwacha appreciated by 3.1% in a single day following the announcement that the International Monetary Fund (IMF) had approved the $1.3 billion financial rescue for the African nation. Officials in Zambia, particularly President Hakainde Hichilema, sometimes known as “HH,” have hailed the currency’s advances and the bailout’s acceptance as evidence that the new administration’s policies are effective.
Hichilema reportedly said the following in remarks made after the bailout announcement that he waited until the IMF board approved the Zambia issue before going to bed.
Despite the kwacha’s victory over the ruble, Zambian government spokesman Joseph Kalimbwe noted in a tweet that there is still a long way to go.
In the meantime, economist Patrick Chileshe is reported in a Pindula news story as saying that the intervention by the Zambian central bank, together with the low demand for dollars, may be to blame for the kwacha’s comeback.
According to Chileshe they have witnessed the Kwacha strengthening, and that was driven by increased foreign exchange supply to the market by the Bank of Zambia, which was consistent in the market, while the demand for US dollars has been low, and that has led to the appreciation of the Zambian kwacha.
The measures of the Zambian government are claimed to have contributed to the decline in inflation from over 24% in August 2021 to 9.8% by June 2022, making the kwacha the best-performing currency in the world.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.