Zambia’s Gross International Reserves declined to US$6.2 billion, equivalent to 5.2 months of import cover, in March 2026.
This is compared to a historic high of US$6.5 billion recorded in February 2026, largely supported by foreign exchange purchases.
Bank of Zambia Governor, Denny Kalyalya, said the decline observed in March was mainly due to Government payments relating to fuel procurement amounting to US$114.7 million.
Speaking at a media brieifng, Dr. Kalyalya explained that other contributing factors included Central Bank support to the foreign exchange market totaling US$106.5 million, as well as Government debt service payments amounting to US$40.1 million.
“This was US$700 million higher than the December 2025 reserve stock of US$5.5 billion, equivalent to 4.8 months of import cover,” Dr. Kalyalya stated.
Meanwhile, the Zambian Kwacha appreciated by 14.8 percent against the United States dollar during the first quarter of 2026, driven by strong foreign exchange inflows from the mining sector and financial institutions.
According to the latest foreign exchange market update, the local currency continued on its appreciating trend in April, gaining a further 0.8 percent against the US dollar.
The Bank of Zambia report also indicates that as of May 11, 2026, the Kwacha’s year-to-date appreciation rate against the US dollar stood at 14.53 percent.
According to Dr. Kalyalya, the strengthening of the Kwacha reflects improved foreign exchange inflows into the economy, particularly from mining activities, which continue to play a significant role in supporting the country’s foreign exchange market.
“Net foreign exchange sales by mining companies increased to US$626.0 million while tax remittances to the Bank of Zambia amounted to US$289.7 million,” he said. “Together, these inflows raised total foreign exchange liquidity supplied by the mining sector to US$915.7 million from US$759.4 million in the previous quarter,” he said.
He added that foreign financial institutions contributed US$542.3 million to the market compared to US$335.6 million in the previous quarter.
“Due to improved liquidity, net supply increased to US$230.2 million compared to US$93.4 million in the previous quarter,” Dr. Kalyalya added.
