LUSAKA, Monday, November 24, 2025 — The Zambian kwacha held broadly stable against the US dollar on Friday, supported by tight liquidity conditions on the interbank market and moderated corporate demand, according to market data from commercial banks.
Data from November 21 trading sessions showed the kwacha traded within a narrow band, with most banks quoting the dollar between K22.87 and K23.05 on the interbank market across the morning, midday and late-afternoon sessions. Retail rates for walk-in clients ranged wider, between K22.81 and K23.42 on the buy-side and K23.15 and K23.48 on the sell-side.
The market average interbank rate moved marginally during the day, opening the 09:30 session at K22.94/K22.99, firming slightly by 12:30 to K22.98/K23.03, before closing at K23.01/K23.06 in late trading. Traders attributed the slight upward drift to end-week dollar demand from importers in the energy and manufacturing sectors.
Citi, Stanbic, and Indo-Zambia Bank posted some of the highest retail selling quotes with Citi peaking at K23.42, Stanbic at K23.48, and Indo-Zambia steady at K23.37 across all three sessions. Banks with the most competitive consumer sell rates included Access Bank and ABSA, averaging around K23.15 K23.26.
Despite the modest pressure, traders said the kwacha’s movement remained orderly.
“Dollar supply from mining houses earlier in the week helped cushion volatility, but liquidity remains thin, so even small flows are moving the market,” said one treasury dealer at a Lusaka-based commercial bank.
Inflation and Monetary Policy Outlook
Analysts said the exchange-rate stability comes at a time when domestic inflation is showing signs of plateauing after several months of food-price pressure. Although the central bank has recently maintained a tight policy stance to anchor inflation expectations, markets are watching closely for any adjustment in the next Monetary Policy Committee meeting as global financial conditions shift.
The kwacha has faced headwinds in recent months from stronger seasonal demand for dollars and cautious foreign investment positioning ahead of year-end portfolio rebalancing. However, improved copper-export receipts and renewed investor confidence following Zambia’s exit from default have provided some underlying support.
Market Watch: What to Expect This Week
Foreign-exchange traders expect the kwacha to trade between K22.90 and K23.20 in the first half of the week, barring any abrupt corporate demand spikes. Attention will be on month-end flows, inflation data updates, and global dollar movements driven by upcoming US economic indicators.
