Zambia’s Kwacha Becomes World’s Best-Performing Currency

Zambia’s Kwacha Becomes the World’s Best-Performing Currency

Zambia’s currency, the kwacha, has become the world’s best-performing currency in recent months. This strong rise is mainly driven by higher copper prices, firm action by the central bank, and major policy changes aimed at reducing reliance on the US dollar.

Copper is Zambia’s main export, and global copper prices have risen sharply. This has increased the country’s foreign earnings and boosted confidence in the kwacha. At the same time, the Bank of Zambia has aggressively sold US dollars into the market to support the local currency. New central bank rules have also limited excessive dollar use, pushing businesses to trade more in kwacha.

In a historic move, Zambia has also allowed mining companies to pay some taxes in Chinese yuan. This is the first time the country has formally accepted a major alternative to the dollar for such payments. The change comes as China continues to promote the global use of its currency, especially in Africa.

As many African countries look for ways to reduce dollar dependence, Zambia’s approach stands out. Its mix of strong commodity exports, firm central bank action, and currency diversification is working. Zambia may now be offering a real-world example of how de-dollarisation can succeed and the results are paying off.