By Joseph Tembo 
An Investment Markets Analyst and Financial Advisor says the Kwacha’s monthly average exchange rate depreciated by 4.18%, throughout quarter one of 2025.
Munyumba Mutwale told Money News in an interview that this has positioned the local unit on the lower end of the 5 to 10-year average depreciation range of 3.81% to 6.89%.
Mr. Mutwale explained that this suggests that based on monthly averages, the Kwacha has lost strength significantly less than it has over the past five years and remains generally in line with historical depreciation trends observed in the first quarter over the last decade.
“In January 2025, the Kwacha depreciated by 1.27% compared to the 10-year and 5-year average depreciations of 1.54% and 2.89%, respectively.”
“In the month of February, the Kwacha depreciation rate stood at 0.98% compared to the 10-year and 5-year average depreciations of 1.62% and 2.05%. In March, it depreciated by 1.87% compared to the 10-year and 5-year average depreciations of 0.61% and 1.80%,” Mr. Mutwale noted.
He added that the relatively slower depreciation in January and February, contributed to stabilizing petrol prices over the past two months.
“Thanks to the relatively slower depreciation in January and February, the Kwacha has performed better than expected. This has contributed to stabilizing petrol prices over the past two months.
Mr. Mutwale further said combined with lower global energy prices, this stability is expected to keep pump prices around or slightly lower than the current range.
The US Dollar is buying at Twenty-Eight Kwacha One Ngwee and selling at Twenty-Eight Kwacha Thirty Nine Ngwee.
Cecilia Chiluba