Zambia Fighting `Phantom' in World's Worst Currency Plunge
- Market structure under central bank scrutiny as kwacha plunges
- All options on table as currency's decline fuels price rises
This article is for subscribers only.
The Zambian kwacha’s plunge, the world’s biggest exchange-rate depreciation this year, is being fueled by “phantom demand” for foreign currencies, according to the deputy governor at the nation’s central bank.
“What’s clear is there is a mismatch between the way the market is behaving and the fundamentals in the market,” Bwalya Ng’andu said in an interview in London. “The market is fueling itself.”