Without a war, economic crisis or official devaluation, the Kwacha has lost its value in seven months making it the world’s worst performing currency after Argentina and Malawi
By Dean.N. Onyambu
. The USD has appreciated 51.84% against the Kwacha, from a USD/ZMW rate of 17.025 on 23 June 2023 to a USD/ZMW rate of 25.850 on 04 Jan 2024.
This is an annualized rate of 118.52%.
2. The Kwacha has depreciated 34.14% against the USD, from a ZMW/USD rate of 0.058737 on 23 June 2023 to a ZMW/USD rate of 0.038685 on 04 Jan 2024.
This is an annualized rate of 54.31%.
3. It is more correct to state that the Kwacha has lost over one-third of its value (34.14%) against the USD over the last 7 months.
4. Even though this looks better mathematically, the Kwacha, without an official devaluation (like Malawi) or an economic crisis (like Argentina), is still the 3rd worst-performing currency GLOBALLY over the last 7 months.
5. Is this still not an FX crisis that needs urgent addressing?
Original Post:
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Dean N Onyambu
Executive Head, Trading, Opportunik Global Fund (OGF) | Strategist | Economist |