Zambia’s kwacha tumbles on weak copper price, dollar shortage

Zambia’s kwacha lost 1.2 pct to 7.8350 against the dollar on Friday, weighed down by weak copper prices and amid low greenback supplies.

“The kwacha remains vulnerable because of global and domestic risks including weak copper prices and Zambia’s shortage of power. Until we see some significant dollar inflows to give the kwacha support, it will remain under pressure,” one commercial bank trader said.

Zambia, Africa’s No.2 copper producer, plans to cut power supplies to mines by up to 30 percent as early as next week after water levels at its hydro-electric projects dropped due to drought.

Reuters