ZMK/ US exchange rate hits over 22,50
The Zambia Kwacha recently touched 22.56 mark against the United States of America dollar, the highest since February 2024.
Over the past 4 weeks, Zambia Kwacha lost 4.82%, and in the last 12 months, it decreased 14.41%.
Meanwhile, according to Trade Economics, the USD/Zambian Kwacha exchange rate is expected fall to 22.5700 on October 15, 2025, down 1.07% from the previous session.
Over the past month, the Zambian Kwacha has strengthened 3.24%, and is up by 15.02% over the last 12 months.
According to Central Statistical Office of Zambia the country’s annual inflation rate eased to 12.3% in September 2025, down from 12.6% in the prior month, extending a five-month streak of slowing price growth.
It was the lowest reading since September 2023, amid the relative strength of the kwacha.
Both food and non-food prices saw more modest rises in September, at 14.6% and 9%, down from 14.9% and 9.3% in August, respectively.
On a monthly basis, the CPI rose by 0.5% in September, the same pace as in the prior month.
The Central Bank of Zambia left its benchmark interest rate unchanged at 14.5% during its regular meeting on August 13th, 2025, marking the second consecutive hold.
Policymakers noted that inflation has been trending downward since the last meeting but remains above the 6–8% target, while uncertainties around trade policies and ongoing geopolitical tensions persist.
Zambia’s annual inflation rate decelerated for the third month to 13% in July 2025, reaching the lowest level since November 2023.
It is expected to continue its downward trend over the next eight quarters, reaching the target band by Q1 2026—earlier than May 2025 projections.
The updated forecast sees inflation at 13.3% in 2025 and 7.7% in 2026, stable into mid-2027, reflecting exchange rate gains, lower commodity prices, and policy measures.
Highlights: Zambia’s currency, the kwacha, reached its strongest level in nearly two years, triggered by optimism about the copper industry.
The kwacha advanced by 0.7% to 22.76 per dollar, making it Africa’s top-performing currency with a 23% gain this year.
The rally mirrors increased confidence in Zambia’s recovery in copper production following economic challenges.
The stronger kwacha and robust commodity prices signal economic stability, potentially reducing inflation and encouraging growth.