Improved prospects that Zambia will secure International Monetary Fund financing have helped the kwacha strengthen this month, the nation’s central bank said in a statement.
- Currency’s gain also reflects changes in supply of foreign-exchange, expectations of further improvements in inflows associated with forthcoming IMF Special Drawing Rights allocation
- Stronger metal prices have also resulted in better foreign-exchange flows from mining industry
- Bank of Zambia sold $687.5 million to market in year through July 23, compared with $86 million in same period a year earlier
- Foreign-exchange reserves have increased to $1.4 billion at end-May from $1.2 billion at end-March
- NOTE: Kwacha has gained 7.6% against dollar so far this month
- NOTE: June 4, Zambia’s Bonds Bounce Back as High Copper Prices Eclipse Default
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