Zambia’s kwacha has gone from the world’s third-worst performance in 2015 to the best this year, outshining gold, silver and 150 other other currencies and precious metals tracked by Bloomberg.
Further gains are in store as copper prices recover, according to ETM Analytics.
The currency of Africa’s second-biggest copper producer has advanced 19.9 percent against the dollar in 2016, surpassing gold’s 16.3 percent gain, after slumping 42 percent in 2015. The currency has benefited from an increase in metal PRICES, news of increased mining investment and proposed changes to mineral royalties seen to be more investor friendly.
“We continue to see the kwacha relocating with the copper price,” Gareth Brickman, an Africa analyst at ETM Analytics, said in a report on April 12. “There is still room for several percent’s worth of gains.”
The kwacha’s slump last year was sparked by a severe power crisis, falling copper prices