Zambia’s FX reserves have reached a record high of USD 4.31 bln, but the kwacha has depreciated to a near-record low against the USD. The decline is attributed to rising demand for dollars driven by energy and agricultural imports. Zambia’s reliance on hydroelectric power, coupled with low water levels in key reservoirs, has exacerbated the pressure on the currency. The Kariba Dam, the largest hydroelectric source, currently has less than 10% of its storage available for electricity generation.