kwacha
ZAMBIAN KWACHA KEY FIGURES
| Q1 2026 Appreciation | Q4 2025 Average Rate | Q1 2026 Average Rate | Driver |
|---|---|---|---|
| +14.8% | ZMW 22.80/USD | ZMW 19.43/USD | Mining FX inflows |
The Kwacha appreciated sharply against the US dollar through late 2025 and into 2026, gaining 4.1% on average in the fourth quarter of 2025 and a further 14.8% in the first quarter of 2026, moving from an average of ZMW 22.80 per USD to ZMW 19.43 per USD.
The appreciation was driven by strong foreign currency inflows from mining and foreign financial institutions, and was cited by the Bank of Zambia’s Monetary Policy Committee as a factor supporting its May 2026 decision to cut the Monetary Policy Rate, even as rapid currency strength created valuation effects flagged as a financial stability risk.
Recent Appreciation
The Kwacha appreciated sharply against the US dollar through late 2025 and into 2026, gaining 4.1% on average in the fourth quarter of 2025 and a further 14.8% in the first quarter of 2026, with an additional 0.8% gain in April[1]. The average exchange rate moved from ZMW 22.80 per USD in the fourth quarter of 2025 to ZMW 19.43 per USD in the first quarter of 2026, on strong foreign currency inflows from mining and foreign financial institutions[1].
Role in Monetary Policy and Financial Stability
The Kwacha’s stability was cited by the Bank of Zambia’s Monetary Policy Committee among the factors supporting its May 2026 decision to cut the Monetary Policy Rate by 25 basis points to 13.25%[1]. The Bank of Zambia has also noted that financial market stress ticked up slightly as the rapid appreciation of the Kwacha created valuation effects for some market participants, even as the core banking system remained sound[2].
Investment Opportunities
The sharp swing in the Kwacha’s value, from ZMW 22.80 to ZMW 19.43 per USD in a single quarter, illustrates the currency volatility that any investor with Kwacha-denominated revenue or costs needs to plan around, whether through hedging or by structuring contracts with that swing in mind, detailed further alongside broader macroeconomic context on the dedicated Economy page[1].
Last Update: September 2026
