The Zambian kwacha hit a record low against the USD, declining by 1.9% this month, amid a severe drought and protracted debt restructuring efforts. The kwacha’s depreciation exacerbates inflationary pressures as Zambia increases imports of food and electricity. The country is facing a dire economic situation, with inflation at a two-year high of 13.8% and expected reductions in cereal production due to the drought.