Kwacha Likely To Be Stable This Week

Zambian Kwacha is likely to remain stable this week due to Bank of Zambia’s injection of United States Dollars into the interbank market in the previous week.

According to Trading Economics, the US dollar-Kwacha rate increased by 0.05% to K26.84 yesterday Monday November 4, from 26.82 in the previous trading session.

Historically, the exchange rate reached an all-time high of 27.40 in May of 2024.

And Economist Gerald Soko told Money FM News in an interview that the local is however expected to be slightly weaker with a bias towards appreciation, but the overall performance will be stable.

“The Kwacha is expected to continue trading stable. Last week we saw a bit of demand strengthening on the market.”

“So, in terms of the bias, there is a likelihood that the Kwacha will trade with a weaker bias but still in a very tight range in terms of the exchange rate,” Mr. Soko stated.

Mr. Soko added that the Central Bank is likely to continue supporting the interbank market this week to ensure stability in the Kwacha’s performance against the US dollar.

“In terms of stability, what we have seen especially last week, the Central Bank was back in the market trying to provide supply support just to make sure that the Kwacha does not run away. We expect the same thing to continue happening this week,” he added.

According to Trading Economics global macro models and analysts’ expectations, the Zambian Kwacha is expected to trade at K27.32 by the end of this quarter.