Russia has proposed the use of the Kwacha and the Ruble in bilateral trade with Zambia, a move that could signal a potential shift in currency strategy as both countries explore ways to strengthen economic cooperation and reduce reliance on third-party currencies.

The proposal comes at a time when global trade patterns are adjusting in response to shifting geopolitical dynamics, currency volatility, and renewed interest among some nations in settling transactions using local currencies. For Zambia, the suggestion presents both opportunities and policy considerations tied to exchange-rate stability, trade balance, and financial risk management.

Diplomatic and economic engagements between Zambia and Russia have expanded in recent years across sectors such as mining, energy, agriculture, and infrastructure. The latest proposal seeks to deepen commercial ties by facilitating trade transactions in domestic currencies rather than predominantly using the United States dollar or other major reserve currencies.

Supporters of the initiative within business and government circles view local currency trade as a potential pathway to reducing foreign exchange pressure and transaction costs. They say settling trade in Kwacha and Ruble could ease demand for hard currency, particularly in periods of external financial strain or limited dollar liquidity.

However, financial institutions and economic policy stakeholders have urged caution, noting that currency-based trade arrangements require robust financial infrastructure, stable exchange-rate mechanisms, and clear settlement frameworks. They warn that without adequate safeguards, exposure to currency volatility could introduce new financial risks for importers, exporters, and financial intermediaries.

Meanwhile, Zambia continues to navigate broader economic reforms aimed at stabilising public finances, managing debt obligations, and restoring investor confidence. The country’s engagement with international financial partners and multilateral lenders remains a central feature of its economic recovery efforts, influencing policy choices around trade, currency, and foreign investment.

Russia’s proposal also reflects a broader global trend in which some nations are seeking alternatives to dollar-dominated trade systems. Advocates of local currency settlements argue that such arrangements can enhance financial sovereignty and reduce vulnerability to external economic shocks.

On the other hand, trade experts emphasise that Zambia’s export profile, dominated by copper and other commodities priced on global markets, remains closely tied to dollar-based pricing mechanisms. They caution that shifting settlement currencies may require careful alignment with existing commodity-trading structures to avoid inefficiencies or pricing complications.

Within the private sector, exporters and importers are assessing how a Kwacha–Ruble framework could affect pricing, contract terms, and foreign exchange exposure. Some businesses have expressed interest in diversified settlement options, while others remain concerned about liquidity, hedging tools, and the practicality of large-scale local currency transactions.

Government officials have indicated that any decision to pursue local currency trade arrangements would be guided by economic prudence, regulatory preparedness, and consultation with financial institutions. Authorities have stressed that maintaining macroeconomic stability, protecting foreign reserves, and supporting trade competitiveness remain core policy priorities.

The proposal has also raised questions about Zambia’s broader foreign-policy positioning, as the country balances relationships with traditional Western partners, emerging global powers, and regional allies. Observers note that trade-currency choices can carry both economic and symbolic implications within international diplomacy.

At the same time, Zambia continues efforts to diversify its economy beyond copper, with initiatives targeting agriculture, manufacturing, and value addition. Expanding trade partnerships and exploring alternative settlement models form part of a wider strategy to broaden economic resilience and market access.

As discussions progress, policymakers face the challenge of weighing potential benefits of local currency trade — such as reduced dependence on external currencies — against operational, financial, and market-related complexities. The outcome may shape Zambia’s trade architecture and currency policy in the years ahead.