Copper prices fall, Citigroup takes profits by closing short positions in the Zambian currency, the Kwacha.

The global copper price decline prompted Citigroup Group to temporarily close out its trading position in the Zambian currency, the kwacha. Citigroup strategist Katie Kironde said on Monday that, given the ongoing sell-off in the metal markets, she had closed out a short position on a three-month non-deliverable forward contract for the US dollar against the kwacha, which had generated a return of 1.3% since the beginning of the year. Kironde said, "The pressure that commodities have been under in the past few trading days has lowered our confidence in the kwacha." She pointed out that historically, the currency has been highly correlated with copper prices. As the second largest copper producer in Africa, Zambia is benefiting from faster economic growth and rising foreign exchange reserves, which has led to a strong performance by the kwacha this year, with a cumulative increase of over 12% so far.