Business

Dollar demand affecting kwacha – Access Bank

TRYNESS MBALE, Lusaka
ACCESS Bank has cited high United States (US) dollar demand and reduced foreign exchange earnings due to low copper prices as factors negatively affecting the kwacha performance.
In its morning digest, the bank says the kwacha opened trading at K6.96 and K6, 98 on Thursday, to later close at K6.98 and K7.00 on the interbank.
“The kwacha is expected to continue trading weak due to high demand for the dollar and reduce foreign exchange earnings due to low copper prices,” the statement says.
Similarly, Zanaco Bank says the kwacha is expected to continue trading in the range of K6.95 and K7.05 in the near term.
“The local unit is expected to continue trading in a narrow range as the market appears to be in a matched position,” the bank says in its daily treasury newsletter.
On Thursday, the local unit appreciated against the dollar due to reduced demand for the greenback.
The bank says the currency markets were relatively calmer on the day as corporate and interbank demand for the dollar appeared to thin out.
It says the kwacha opened trading at K6.98 and K7.00, which was 1.5 ngwee weaker than the previous day’s close and its strongest level was at K6.97 and K6.99 on the bid-and-offer, respectively.
On the local market, it experienced a significant decrease in liquidity to close Thursday at almost K1.4 million from the previous days of about K1.6 million.
Zanaco also says the volume of funds traded on interbank went up to K246 million from K151 million while the average interbank rate marginally dropped to 12.40 percent from 12.45 percent.

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