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The Kwacha expected to rise based on copper prices on the world market

Filed under: Business,Latest News |
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Copper prices on the international market have continued on a steady rise and the Kwacha is expected to gain some strength, though for a short period basically in the absence of a healthy forex inflows.

China, the world’s top copper consumer, reduced interest rates on its medium-term funding for financial institutions to the lowest levels.

This is due to the prioritisation shift, as it chanelled resources torwards combating the economic fallout from the coronavirus pandemic.

The commodity, which is Zambia’s major foreign currency earner, was recently up by 0.3 percent on the London Metal Exchange to trade at US$5,180 a tonne.

Copper is the predominant export product of Zambia and the copper mining industry contributes significant proportions of the gross domestic product and government revenues.

Zambian copper is sold in world markets at prices ased on the London Metal Exchange (LME) copper price quotation which is notorious for its short-term volatility. Copper mining could be used as a bond in steadying the value of the Kwacha.

The sector also provides employment to thousands of people.

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