By Cecilia Chiluba 
Economics Association of Zambia (EAZ) is confident of a resilient and stable positive economic outlook for Zambia as the Kwacha continues to gain strength against the US Dollar.
Commercial banks have today quoted the local unit at K23.28 and K23.67 on the bid and offer respectively, from K24.00 to the US dollar a week ago.
Commenting on this development, EAZ President Dr. Oswald Mungule attributed the appreciation of the Kwacha to the prevailing weak U.S. Dollar, which has eased pressure on the exchange rate.
Dr. Mungule, said in a statement, that the Kwacha’s strength is being supported by strong agricultural performance, which is enhancing rural incomes after the drought period, while also reducing food imports and increasing export earnings.
“Zambia is currently experiencing a favorable macroeconomic environment supported by a combination of domestic and external factors.”
“The Bank of Zambia continues to play a vital role by maintaining a policy rate regime that effectively responds to inflation dynamics while preserving monetary stability,” Dr. Mungule noted.
He added that tax inflows are strengthening the government’s fiscal position, enhancing liquidity and supporting the implementation of national development programs.
“By mid-June 2025, the supply of US dollars substantially increased, supported by the simultaneous due dates of quarterly taxes and annual direct taxes, further boosting the Kwacha, thanks to firmer mining production and metal export,” he observed.
He further observed that high local demand for the Kwacha in both trade and domestic transactions reflects growing confidence in the currency and the overall economy.
“Import demand for energy and food, such as grains, remains relatively subdued, largely due to increased local productivity and substitution, which eases pressure on foreign reserves.”
“Moreover, the recent drop in diesel and fuel prices has lowered transportation and production costs, providing further relief to consumers and businesses alike. Together, these dynamics are fostering a resilient and stable positive economic outlook for Zambia,” Dr. Mungule said.
While acknowledging that the recent war by the United States of America (USA) and Israel against Iran, may drive up oil prices and disruptions to international trade, Dr. Mungule said Zambia’s economic trajectory remains positive.
“However continued focus on sovereign-to-sovereign portfolio investments with Namibia, Angola, and the Democratic Republic of Congo (DRC), as well as structural reforms, domestic value-chain investments, and policy consistency, will be essential in sustaining the positive trajectory,” he emphasized.