IMF Bailout Approval Helps Zambian Kwacha Take the Russian Ruble’s Position as World’s Best Performing Currency – When it was revealed that the International Monetary Fund (IMF) had authorized the $1.3 billion bailout for the country, the Zambian kwacha, which is currently trading at K15.40 for every dollar, became the world’s best-performing fiat currency. The kwacha is now the best-performing currency in the world, surpassing the Russian ruble with a gain of approximately 18.25% so far this year.
According to a Bloomberg report, the kwacha appreciated by 3.1% in a single day following the announcement that the International Monetary Fund (IMF) had approved the $1.3 billion financial bailout for the African country. Officials in Zambia, particularly President Hakainde Hichilema, commonly known as “HH,” have hailed the currency’s advances and the bailout’s acceptance as evidence that the new administration’s policies are effective.
People Also Read: L2 Scaling Solution Arbitrum Deploys Nitro Rollup Stack Migration
In remarks following the bailout announcement, Hichilema reportedly said:
“I didn’t go to bed until the IMF board passed the Zambia issue. Minutes later, the MD Kristalina Georgieva herself sent me a message: HH, it’s done.”
Joseph Kalimbwe, a Zambian government spokesperson, said in a tweet that while the kwacha had overtaken the ruble, the “country still has a long way to go.”
Meanwhile, in a Pindula news report, economist Patrick Chileshe is quoted suggesting that the kwacha’s resurgence may be linked to the low demand for dollars together with the Zambian central bank’s intervention.
“We have seen the Kwacha gain strength, and that was driven by increased foreign exchange supply to the market by the Bank of Zambia which was consistent in the market, whereas the demand for US dollars has been low and that led to the appreciation of the Zambian kwacha,” Chileshe is quoted saying.
People Also Read: IMF Expects US Economy to Experience High Inflation for at Least Another Year or Two
IMF Bailout Approval Helps Zambian Kwacha Take the Russian Ruble’s Position as World’s Best Performing Currency – In addition to helping the kwacha become the world’s best-performing currency, the Zambian government’s policies are thought to have have contributed to the drop in the inflation rate from over 24% in August 2021 to 9.8% by June 2022.
