Zambia's kwacha has extended its impressive rally from year-end into 2026, securing its position as the world's best-performing currency. The momentum stems from a government directive aimed at curbing foreign-currency transactions. Here's what's driving it: the policy essentially forces companies and businesses to convert their dollar holdings into the local kwacha. When you've got massive institutional players suddenly needing to swap USD for ZMW, you're looking at real demand pressure on the local currency. It's a textbook case of how policy intervention can move FX markets. The broader play here—government-mandated currency strengthening through restricted foreign exchange use—is reshaping investment flows in the region. For traders and market watchers, it's a reminder that macro policy moves can create outsized currency moves, sometimes outpacing traditional market forces. Whether this rally sustains depends on whether the policy sticks and whether foreign investors view it as sustainable.