ZAMBIA’S Eurobonds surged the most in more than a year after the declaration of the president -elect Hakainde Hichilema yesterday August,16th,2021 while the kwacha gained further.
According to Bloomberg, the one billion dollars of Eurobonds due in 2024 jumped 8.3 percent to 72.55 cents on the dollar by 9:30 a.m. in London time.
This has been the biggest gain since June 2020.
Meanwhile the Kwacha gained against the United States dollar and other major currencies yesterday.
The kwacha was buying at K18.9929 and selling at K19.3686 per United States (US) dollar at an inter-bank average as of 15:00 hours yesterday after trading at K19.3 and K19.6 respectively last week
According to the Bank of Zambia (BoZ) daily Commercial banks exchange rates, the British pound was buying at K26.7153 and selling at K26.792 while the South African rand was buying at 1.3007 and selling at K 1.3046.
The margin of victory provides Mr Hichilema with a mandate to take on reforms needed to revive an economy.
The president-elect will also need to reach a deal with the International Monetary Fund (IMF) for a bailout, and repair relations with copper miners operating in Zambia, Africa’s second-biggest producer of the metal.