Zambia’s currency, Kwacha advanced to its strongest level since September after the country’s official creditors agreed to provide financing assurances the nation needs to secure final approval from the International Monetary Fund (IMF)for a $1.3 billion bailout.
As Bloomberg reports, the Kwacha gained by as much as 2.4% to 15.975 against the dollar, making it the second-best performing currency.
The country’s $1 billion of eurobonds due 2024 advanced for a 10th straight day, rising as much as 0.3% to 60.9 cents on the dollar.
Zambia became Africa’s first pandemic-era sovereign defaulter in November 2020. A commitment from the nation’s bilateral creditors committee on July 30 to negotiate a restructuring of their debts cleared the way for the IMF board to approve an economic program for Zambia by as early as September.
Zambia is seeking to rework its debt under the Group of 20 most powerful nations’ so-called Common Framework. China and France are co-chairing Zambia’s official bilateral creditors committee.