Kwacha slightly gains against the dollar

Written by on April 12, 2019


THE Zambian Kwacha gained slightly against the dollar on Monday to close at K12.025/12.075 supported by inflows from corporates converting dollars for their tax Kwacha obligations.

According to Barclays Bank Zambia market up date all commercial banks quoted the local unit at K12.050/12.100 per dollar, the same as Friday’s close. 

The bank reported that the foreign exchange market was fairly quiet with the move in the currency pair mainly characterized by demand and supply. 

It was expected that the Kwacha would continue to trade firm with a bias to strengthen on the back of increased dollar supply. 

On the Money Market Barclays reported that the cost of borrowing funds on the interbank was firm at 9.92% on Monday unchanged from Friday’s close.

Liquidity levels touched higher at K1.887 billion from K1.720 billion with the volumes of funds traded decreasing by 26% to K175 million from K236 million on the day.

The bank further reported that fixed income market was relatively subdued on Monday with a slight pickup in activity on the back of Thursday’s Treasury bill auction.

On the international commodity market, Barclays bank reported that according to Bloomberg, copper prices rose on Monday on news of fresh stimulus measures in top metals consumer China and hopes for a U.S.-China trade deal. 

Benchmark copper on the London Metal Exchange (LME) gained 1.2 percent in closing open outcry trading to trade at $6,475 a tonne, snapping two days of decline. Some other metals prices ended in the red.

Similarly gold prices rose to a more than a one-week peak on Monday as the dollar slipped on slow U.S. wage growth last month and a rally in equities stalled, boosting bullion’s appeal.

Spot gold gained 0.5 percent to $1,297.91 per ounce having earlier touched its highest since March 29 at $1,298.24.

In the same report oil prices rose up to 2 per cent overnight, hitting five-month highs, on expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and US sanctions against Iran and Venezuela.

Brent’s session high of $US71.19 a barrel and WTI’s of $US64.44 were the highest since November.

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