KWACHA EXPECTED TO RECOVER AGAINST THE DOLLAR
Written by Millennium on April 26, 2019
BUUMBA CHIMBULU writes
THE Kwacha is in the short term expected to rebound should liquidity in the money markets remain tight.
Market liquidity is currently at K376.40 million.
According to Cavmont Bank Zambia daily market report, the Kwacha was bearish against the dollar on Tuesday as it touched an intra-day low of K12.350/ K12.400 during afternoon trading from the day’s opening levels K12.290 / K12.340.
The performance of the local unit, the bank explained, was mainly driven by a decline in inflows from sellers and exporters.
Cavmont indicated that this development saw some interbank players protecting their offer side.
“The Kwacha’s performance was also mirrored by other emerging market currencies like the South African Rand (ZAR) which also fell to intra-day low of US$1/ZAR14.2489,” said the bank.
And the Zambia Industrial Commercial Bank reported that the Kwacha recorded a minor depreciation against the dollar.
The bank said the local currency tracked a basket of currencies which had weakened against a generally strong dollar.
“The Kwacha opened at 12.300/12.350 and was unchanged from its closing levels seen on Thursday last week,
“The currency pair closed at 12.340/12.390, K0.04 weaker compared to its opening level,” said the bank
