WHEN looking to identify the world’s best-performing currency, the last place that most people would consider would be in Africa, which for so many years has seen massive inflation and poor financial results, but according to Bloomberg, the Zambian kwacha has so far performed better than any other currency during 2016.
Back off dollar, euro and pound, the kwacha, which last year was derided as one of the worst performing currencies, has actually outstripped gold as an investment vehicle and whilst the world’s banks may not be fighting each other off to move into the Zambian currency, the forecast is that it will continue to go from strength to strength.
Being very much a one commodity economy, the financial health of Zambia depends upon the vagaries of the international price for copper, of which it is a major producer and exporter. A jump in the price of metal was seen in 2016, which explains the rising strength of the currency.
A former British Colony, Northern Rhodesia, Zambia has shaken off its legacy of corruption and is now attempting to mine valuable minerals such as nickel and uranium in order to be less reliant on the price of copper.