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Zambia recorded stronger foreign exchange inflows and a rise in international reserves in the fourth quarter of 2025, Governor Dr. Denny Kalyalya said on Wednesday.
Speaking at a media briefing in Lusaka, Dr. Kalyalya said net foreign exchange supply increased to US$93.4 million in the fourth quarter, reversing a net demand of US$23.6 million in the previous quarter.
Supply from foreign financial institutions jumped to US$335.6 million from US$19.6 million, while the central bank was a net buyer of US$62.4 million to moderate exchange rate volatility and bolster reserves.
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“Stronger inflows, especially from the mining sector, have continued to support the stability of the kwacha and growth of our reserves,” Kalyalya said.
Gross international reserves rose to US$5.5 billion at the end of December, equivalent to 4.8 months of import cover, up from US$5.2 billion (5.2 months) in September.
He said the reduction in import cover reflected an upward revision of projected imports for 2025.
Apart from mining tax receipts and market purchases, reserve growth was supported by project receipts, statutory reserve deposits, interest earnings, and domestic gold purchases.
During the quarter, the Bank purchased 175.23 kg of gold valued at US$23.5 million, bringing total holdings to 3,226.51 kg with a market value of US$446.9 million. The current price of gold stood at US$5,031.4 per ounce.
Meanwhile, Zambia’s current account deficit widened to US$140 million (2.0 percent of GDP) in the fourth quarter from US$28.5 million (0.4 percent) in the previous quarter, driven by net imports and lower tourism receipts.
Kalyalya said imports rose 8 percent to US$3.4 billion, mainly for intermediate goods, consumer goods, petroleum products, and industrial equipment.
Domestic credit growth slowed to 14.4 percent in December from 17.4 percent in September, as private sector lending declined to 15.7 percent from 21.4 percent due to loan repayments in the wholesale, construction, and agriculture sectors.
He said the repayment of foreign currency loans under the government’s Liability Management Operation also contributed to the slowdown.
In the government securities market, total outstanding securities reached K253.7 billion at the end of December, with non-resident investors increasing their holdings by K4.2 billion to K65.7 billion, or 25.9 percent of the total stock.
“Overall, the fourth quarter performance underscores the continued contribution of mining inflows to our foreign reserves and the resilience of Zambia’s financial system,” Kalyalya said.
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