3.3. Economic Environment The economic environment in the quarter under review posted significant positive gains in certain economic variables, a continuation of the positive outlook from the previous quarter after a streak of negativity for nearly twelve months prior. Among the notable variables that posted improvements was the appreciation of the Kwacha against major convertibles. For example, at the beginning of the quarter on 1st October, 2021, the US Dollar was selling at K16.8 while at the close of the quarter (on 31st December) it was selling at K16.7 25. This was a maintained trend from the previous quarter which closed at K16.8 for one dollar on 30th September. Similar trends were also observed in other major convertible currencies. BOZ EXCHANGE RATES ($) OCT-DEC 2021 1 Oct 21 8 Oct 21 15 Oct 21 22 Oct 21 29 Oct 21 5 Nov 21 12 Nov 19 Nov 26 Nov 3 Dec 21 10 Dec 17 Dec 24 Dec 31 Dec 21 21 21 21 21 21 21 BUYING RATE SELLING RATE 1 Kwacha-Dollar Exchange rates (October-December, 2021) In like manner, the Annual Inflation Rate recorded a significant slump of nearly 5% in the quarter under review. At the start of the quarter, in October, the year-on-year inflation stood at 21.1% and 16.4% at the close of the quarter in December 26. The slow-down in the annual rate of inflation was mainly attributed to favourable price movements in food and non-food items. According to the Bank of Zambia Historical Series of exchange rates. Available at https://www.boz.zm/historical-series-of-daily-zmw-usd-exchange-rates-zmw.htm 26 As reported in the Zambia Statistics Agency Monthly Bulletins for October, November and December, 2021. See https://www.zamstats.gov.zm/index.php/publications/category/50-2021 25 25