Currencies

Kwacha Slips to Record Low as Drought Fuels New Risks for Zambia

  • Currency has weakened for 11 days in a row versus dollar
  • Country’s Kariba Dam reliance makes power imports essential

The kwacha had a volatile 2024, thanks to central bank action to defend the currency as well as an IMF deal. 

Photographer: Luke Dray/Bloomberg
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Zambia’s currency kwacha plunged to a record low as a severe drought increases power prices and risks hurting the African nation’s economy.

The currency weakened for an 11th consecutive day to trade at 28.1200 per dollar by 2:06 p.m. in London. Tuesday’s 0.4% retreat was the biggest in three weeks.