Currency Volatility Tracker

Zambia's Currency Hit by Inflation, Default

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Zambia's inflation rate has soared since January 2018 when it was 6.2% and June 2019 when it was 8.6% hammering the value of the kwacha.

Inflation is hurting Zambia's currency at a time when a rise in the commodities market should be boosting the value.  "There's no easy way out here really."

A rise in commodity prices would normally be a boon for Africa's second largest copper producer, but that is not the case in Zambia these days where the country's currency, the kwacha, has fallen dramatically against the dollar as the result of rising inflation, high debt and a recent default on a portion of the country's bond obligations.

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