Zambian Currency and Eurobonds Rally on Bets of Debt Revamp Deal
- Hichilema, IMF, US Treasury officials, say deal ‘imminent’
- Both kwacha and eurobonds have made double-digit gains in June
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Zambia’s currency and dollar bonds traded near multi-month highs, having chalked up double-digit gains so far this month on expectation that the nation is about to clinch a debt restructuring deal with official creditors, possibly as soon as Thursday.
The kwacha has strengthened 11.4% this month, the biggest gain among about 150 currencies tracked by Bloomberg, rising on Thursday to approach a two-month high versus the dollar. Zambia’s eurobonds have returned 10.1%, a performance bested only by El Salvador and Argentina. That compares with the 1.5% average return for emerging and frontier peers in a Bloomberg index.