Zambia's Kwacha Weakens Amid Regional Currency Stability

Zambia's kwacha is facing significant depreciation pressures, having slid to a near-record low against the US dollar, attributed to rising import costs and increased dollar demand. Despite achieving record-high foreign-exchange reserves, the kwacha's performance has been weakened by economic challenges stemming from a historic drought. In contrast, currencies in countries like Kenya, Ghana, Nigeria, and Uganda are demonstrating stability, supported by strategic financial management and inflows from remittances and NGOs. The Kenyan shilling remains steady, while Nigeria's naira is stabilized by central bank interventions. Similarly, the Ghanaian cedi shows resilience due to forex inflows and liquidity support from the central bank. This situation highlights the importance of effective monetary policy in maintaining currency stability amid external pressures.