Mining sector tax payments nearly doubled in the fourth quarter of 2025, rising to US$344.6 million and significantly boosting foreign exchange supply into the market.
Bank of Zambia Governor Denny Kalyalya has revealed that in addition to tax payments, mining companies sold over US$400 million directly into the foreign exchange market during the quarter.
This pushed total forex supply from the sector to US$759.4 million, up from US$636.8 million recorded in the third quarter.
Dr. Kalyalya says the stronger inflows helped shift the market to a net supply position of US$93.4 million in the fourth quarter, compared to a net demand of US$23.6 million in the previous quarter.
He has added that Foreign financial institutions also stepped up their participation, increasing their supply to US$335.6 million from US$119.6 million in the third quarter.
Meanwhile, the Bank of Zambia was a net buyer of US$62.4 million during the period as part of efforts to moderate exchange rate volatility and build international reserves.
By Rachel Mumba
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