Kwacha gains against the dollar
Written by Millennium on May 8, 2019
SUN BUSINESS REPORTER writes
The Kwacha made a short come back against the U.S dollar on Friday as it appreciated to an intra-day high of K12.750 / K12.800 from its opening levels of K12.900 / K12.950 which it had closed on Thursday.
The local unit received some support from increased interbank flows.
According to Cavmont Bank Zambia daily market report, however, this was short-lived following an increase in demand from corporates as well as on the interbank and this later saw the local unit being quoted K12.850 / K12.900, a level it maintained until close of business.
The kwacha was likely to maintain a bearish tone in the short term though it may rebound should liquidity in the money markets become tight.
ON the money marker, the bank reported that The commercial banks’ aggregate current account increased by K59.91 million to K839.52 million while the overnight borrowing and lending rate increased by 0.01% to 9.91%.
Total funds traded on Interbank was K505 million.
On international metal market, the bank reported that copper price on the London Metal Exchange (LME) rose by US$12 to trade at $6,175 a tonne.
Gold enjoyed the same experience when its price rose by a modest US$5.00 to sell at $1,272 an ounce.
But Brent crude oil suffered a small jolt during the same period under review when it posted a price reduction of US$0.13 and the commodity was currently selling at US$70.77 a barrel.