While the Iranian rial has totally crashed against the dollar, Zambia’s kwacha is the best-performing currency worldwide against the US dollar.
Zambia’s kwacha gained approximately 10% within a month, following a government policy that restricts the use of foreign exchange, forcing businesses to convert more dollars to kwacha for local transactions.
This increased demand for the kwacha has driven it to a two-year high, trading at its highest level of 20.10 per dollar. 
The kwacha’s 10% gain since early last month marks it as the largest growth among currencies monitored by Bloomberg, with a nearly 4% rise occurring in a single day, the highest since October 2023.
How Did Kwacha Achieve This Feat?
The kwacha has strengthened due to several factors: sellers are offloading dollars following a central bank mandate to limit foreign currency transactions, companies are converting foreign exchange into kwacha for tax payments, and there has been a significant surge in copper prices.
Zambia ranks as Africa’s second-largest copper producer, trailing only the Democratic Republic of Congo.
According to Samir Gadio of Standard Chartered Plc, additional support for the kwacha is likely influenced by tax obligations due by January 10 and the central bank’s directive.
However, one of the issues that may halt its growth is that the continued strength of the kwacha is supported by high copper prices. This means the kwacha is relying on sustained demand for the metal.
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