After the International Money Fund revealed it had approved a bailout package for Zambia, the Southern African country’s currency, the kwacha, rallied by 3.1%. Following this gain, the kwacha took the Russian ruble’s position as the world’s best-performing currency in 2022.
Zambia Still ‘Has a Long Way to Go’
The Zambian kwacha currency, which currently trades at K15.40 for every dollar, became the world’s best-performing fiat currency when it was announced that the International Monetary Fund (IMF) had approved the $1.3 billion bailout for the country. With a year-to-date gain of over 18.25%, the kwacha has taken the Russian ruble’s position as the world’s best-performing currency. According to a Bloomberg report, news of the International Monetary Fund (IMF)’s approval of the $1.3 billion financial bailout to the African country saw the kwacha rally by 3.1% in a single day. Zambian officials including President Hakainde Hichilema — who is popularly known as “HH” — have touted the currency’s gains and the approval of the bailout as proof that the new government’s policies are working. 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.”
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