By Joseph Tembo 
An Economist has attributed the rapid appreciation of the Kwacha to increased copper exports and favorable maize production.
The local unit closed the market today trading at K23.10 and K23.49, on the bid and offer respectively.
Speaking in an interview with Money News, Michelo Maunga noted that the projected maize surplus of about 500, 000 metric tonnes for the 2024/2025 agricultural season, will reduce grain imports and strengthen the currency.
Mr. Maunga also noted that copper exports are trending upwards, as the country has roughly exported 280, 000 metric tonnes so far.
He said this is more than 240, 000 metric tonnes exported during this time last year.
“The current rapid appreciation of the Kwacha is being caused by increased copper exports and favorable maize production.”
“If we do not produce enough food then we have to import maize, but if we have a surplus we are able to export, we do not need to import, so that part helps the Kwacha to appreciate,” Mr. Maunga stated.
He further observed that the current poor performance of the US dollar is contributing to the appreciation of the Zambian Kwacha.
“The US dollar is not doing that well because of the many things that are currently happening in the United States of America and the Trump Administration.”
“So there is a lot of uncertainty over the US economy, hence the dollar is not performing strongly,” he noted.
Mr. Maunga added that there is also a lot of favorable sentiment about the Zambian economy, following the recent upgrade by Moody’s Rating from stable to positive.
He said this has also helped the Kwacha to improve its performance.
“Further, Government recently concluded the successful review of the International Monetary Fund (IMF) programme, so all these are the factors contributing to the appreciation of the Kwacha,” Mr. Maunga said.
Cecilia Chiluba