{"id":19475,"date":"2023-04-04T11:59:25","date_gmt":"2023-04-04T11:59:25","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/zambian-currency-poised-for-first-quarterly-decline-since-2020-economics-bitcoin-news\/"},"modified":"2023-04-04T11:59:25","modified_gmt":"2023-04-04T11:59:25","slug":"zambian-currency-poised-for-first-quarterly-decline-since-2020-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/zambian-currency-poised-for-first-quarterly-decline-since-2020-economics-bitcoin-news\/","title":{"rendered":"Zambian Currency Poised for First Quarterly Decline Since 2020 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Zambian kwacha, one of the best-performing currencies in 2022, is now expected to see its first quarterly decline in nearly two years. The Zambian leader Hakainde Hichilema claimed that stalled debt restructuring negotiations are adding to pressure against the local currency.<\/strong><\/p>\n

Zambia\u2019s Debt Default<\/h2>\n

After ending 2022 as one of Africa\u2019s best-performing currencies, the Zambian kwacha depreciated from 18 units of the local currency for every dollar on Jan. 1, to slightly more than 21 units per dollar by March 31. In addition, a report<\/a> by Bloomberg has said the kwacha is set to realize its first quarterly decline since Q1 of 2020.<\/p>\n

At that time, the kwacha\u2019s drop versus major currencies was attributed to fears Zambia would become the first sovereign defaulter on the African continent. A few months later, Zambia, which was then led by Edgar Lungu, would become the first country from the continent to default<\/a>. However, following Lungu\u2019s departure in August 2021, the Zambian kwacha\u2019s value surged from around 19.34 units per dollar (ZMW19.34:$US1) to 15.3:1 on Sept. 2, 2022.<\/p>\n

As previously reported by Bitcoin.com News, the currency\u2019s rebound<\/a> was spurred by reports that the International Monetary Fund (IMF) had approved a bailout package for Zambia. However, since the beginning of the year, the kwacha has lost ground against the U.S. dollar and other major currencies.<\/p>\n

In an op-ed<\/a> published in the Washington Post, President Hakainde Hichilema seemingly blamed the \u201ccumbersome and bureaucratic\u201d debt restructuring process for causing delays in finalizing his country\u2019s planned reforms. According to the Zambian leader, such delays \u201care putting pressure on the local currency.\u201d<\/p>\n

Meanwhile, the Bloomberg report suggested that a weakened kwacha and a resurgent inflation rate are likely to prompt another rate hike by the Zambian central bank.<\/p>\n

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What are your thoughts on this story? Let us know what you think in the comments section below.<\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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