The Zambian kwacha has just collapsed to more than K10 per one US Dollar.
And the Kwacha has deteriorated to more that K15 per British Pound.
According to Barclays Bank rates for today, September 4, 2015, one USD was by midmorning selling between k10.08 and K10. 28.
One British Pound was trading between K15.37 and K15.67. The Euro was ranging between K11.22 and K11. 44.
The local currency, which has remained on the back foot in the last three years, has seen its free fall gain much momentum since the beginning of the third quarter of this year after China slowed down on the importation of copper while the dollar started appreciating on rising interest rates in the US. Copper is Zambia’s biggest foreign exchange earner, accounting for about 78 per cent. But a combination of government’s frequent changes to the mining fiscal regime, electricity shortages and depressing international metal prices has seen the country’s economic mainstay severely battered. And Indo-Zambia Bank said the current power crisis was worsening economic conditions in the country and adding to factors putting pressure on the local currency. “It seems that the market has overstretched in one direction,” stated Indo-Zambia in its daily market report. “It could be due to importers’ demand and lagging of exporters’ dollar hoping for a better rate in future. The fundamental reason for depreciation could be considered to be worsening economic indicator, gloomy China outlook, and continued power shortage.”