January 2026 Zambian Kwacha performance update
Zambian Social Economist Kelvin Chisanga
By Kelvin Chisanga
The Zambian kwacha has delivered a strong performance rebounds seen in January 2026, extending gains from late December and was ranked among the best-performing currencies globally during the material period.
The currency traded largely within the K19.5–K20.5 per US dollar range, recording an appreciation of slightly over 10% at its peak compared to end-2025 levels.
Early January was purely marked by a sharp appreciation, strongly supported by an increased dollar selling, robust export inflows particularly from copper and improved market confidence underpinned by sustained fiscal and monetary discipline.
These factors among others strengthened foreign exchange supply and reinforced positive sentiment.
Mid-to-late January saw modest pullbacks oscillating in between gains and losses, though heightened intraday volatility to minimal loss of about 2% with gains sitting at 3% reflecting normal market corrections and increased liquidity demand linked to monthly financial obligations.
Importantly, these movements have since remained orderly arranged and did not signal a dynamic sharp shift in underlying market fundamentals.
Overall, January’s performance clearly highlights strengthening macroeconomic fundamentals, improved policy framework coordination and a rising investor confidence.
While short-term fluctuations are expected, the kwacha’s underlying trend remains quite stable and very supportive, especially with the emphasis on the strong Kwacha use domestically reinforcing confidence in Zambia’s broader economic outlook with multipolar system on mine taxes bringing Chinese currency into the payment pool with Zambia’s treasury.
About The Author
