Macroeconomic Forecast Zambia

September 2007 | Macroeconomic Forecasts

BMI View: Kwacha performance is to some extent seasonal, but the unit has been remarkably stable this year. After averaging ZMK4,127.83/US$ in 2006, the central bank mid-rate stood at MNK4048.84 as of mid-September. It has since strengthened to ZMK3,875.9/US$ as our deadline closed, and is likely to do so further as major FDI inflows are anticipated over the rest of the year following some delays in implementing mining projects in recent months. Consequently, we have revised our forecasts for this year and next in the kwacha's favour.

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