Kwacha Projected To Trade Steadily This Week

A Commercial Bank says the Zambian Kwacha appreciated by 0.13 percent las week against the US dollar, closing Friday afternoon’s trading session at K26.44 and K26.49, from Monday’s open rate of K26.41 and K26.46.

According to ZANACO’s Weekly Financial Markets Update, the local unit traded moderately stronger against the United States Dollar, and other major convertible currencies on the interbank market.

The financial service provider observes that with Bank of Zambia’s muted supply to support commercial banks, the local unit traded stronger due to interbank trades which can be attributed to offshore investors, who made conversions ahead of the Treasury Bill auction which was held on Thursday last week.
“At the close of the week, the Kwacha changed course,” the Bank noted.

It further observed that despite a reduction in foreign exchange (FX) supply, interbank trades dropped by 77.4 percent to US$16.15 million from US$71.35 million.

“Due to the Central Bank’s likely reduced supply support during the week and the trend observed last week, the Kwacha is predicted to trade steadily this week with a bias towards depreciation against the main convertible currencies.”

The Kwacha opened today’s trading session at K26.45 and K26.98, after closing the market yesterday trading at K26.42 and K26. 94, on the bid and offer respectively.

Meanwhile, the Bank observed that Copper prices rose on the London Metal Exchange, on demand prospects, after China the top metal consumer took stimulus measures, while rising oil support due to the escalating Middle East conflict also lent support, thereby extending the gains to four weeks.

“The price of Zambia’s major export commodity soared by 1.3 percent to a 17 week high of US$9,811.31 Metric tonnes from US$9, 684.74 Metric tonnes,” it stated.