Zambia’s kwacha dropped more than 2 percent to a record low of 10.82 against the dollar on Friday as falling copper prices piled more pressure on the currency of Africa’s number two producer of the metal.
“Dollar liquidity has been low as most corporate entities have stayed out of the market,” a forex trader at BancABC in Lusaka said.
Copper was on track for a 3.3 percent drop this week, its largest weekly fall since the second half of July, fuelled by slackening demand from China.
“It is due to concerns about the slowing Chinese economy and a gloomy domestic macroeconomic outlook,” the trader said. (Reporting Chris Mfula; Writing by Mfuneko Toyana; Editing by Ed Cropley)