In 2010 the kwacha appreciated by 4.9% as copper prices rose by more than 45%. In 2011-12 the kwacha is forecast to depreciate marginally as copper prices continue to rise, but much less rapidly than in 2010. Foreign-exchange inflows will be boosted by strong copper output, an increase in public borrowing for large infrastructure projects and heavy FDI inflows. These will be offset by buoyant import demand, a limited recovery in aid and a stronger US dollar in 2012. Overall, the kwacha is forecast to depreciate by 2.8% to ZK4,932:US$1 in 2011 and by 5% to ZK5,181:US$1 in 2012 as the growth in copper prices slows further.