JOHANNESBURG/LUSAKA (Reuters) - Zambia's kwacha currency hit a record low against the U.S. dollar on Wednesday, touching 27.30 to the dollar amid hard currency shortages and a punishing drought that has led to power cuts in the southern African copper producer.
The kwacha, which tends to weaken slowly before briefly strengthening, has lost almost 5% of its value against the greenback this year and 17% in the last six months, according to LSEG data. Its previous low was 27.23 on February 6.
One of the largest copper producers on the African continent, Zambia defaulted in 2020 during the COVID-19 pandemic. Its debt restructuring efforts have been beset by delays, although they took a step forward in March when the government and a group of bondholders reached a deal-in-principle.
An International Monetary Fund (IMF) team is currently visiting the country, discussing a third payout from a $1.3 billion rescue loan programme approved in 2022.
(Reporting by Rachel Savage and Chris Mfula; Editing by Chizu Nomiyama)
By Rachel Savage and Chris Mfula
