By Fridah Chalwe,
Economist Kelvin Chisanga has reported a strong rebound of the Zambian kwacha in January 2026, building on gains recorded in late December and positioning the currency among the best-performing globally.
The kwacha traded within a range of K19.5 to K20.5 per US dollar and appreciated by over 10% at its peak compared to end-2025 levels, driven by renewed market strength.
Mr. Chisanga explained that the sharp early January appreciation was supported by increased dollar selling, robust copper export inflows, and improved investor confidence anchored in sustained fiscal and monetary discipline. These factors boosted the foreign exchange supply and reinforced positive market sentiment.
He noted that mid-to-late January saw modest and orderly pullbacks, with limited volatility reflecting normal market corrections and liquidity adjustments.
Overall, Mr. Chisanga said the kwacha’s performance reflects stronger macroeconomic fundamentals, improved policy coordination, and growing investor confidence, supported further by increased domestic kwacha use and a multipolar mine tax payment system, including Chinese currency.
