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Kwacha holds strong footing against dollar

DESPITE the sharp instability expected to characterise the market in the near-term, the Kwacha is anticipated to maintain a strong footing against the United States (US) dollar, financial market players say.
Zanaco Bank says the local unit appreciated significantly against the greenback on Wednesday on the back of continued dollar inflows and tight local currency liquidity.
In its daily treasury newsletter, Zanaco says local markets were relatively active on the day with strong bouts of dollar selling swinging the currency pair between a high and low of K10.25 and K10.30 and K10.30 and K10.35 respectively.
“Heightened volatility is expected to characterise the market in the near term with the Kwacha likely to maintain a bullish tone against the dollar,” the statement reads.
Zanaco, however, says dollar selling from corporate players dominated on Wednesday with the Kwacha closing at K10.15 and K10.20 on the bid and offer.
Similarly, Cavmont Bank in its market report says the Kwacha is expected to appreciate further as supply continues to experience healthy inflows.
On Wednesday, the Kwacha posted further gains against the dollar with continued improvement in supply from corporates looking to meet local tax and month-end obligations.
The bank says the Kwacha opened trading at K10.65 and K10.70 much unchanged from the previous day’s closing levels.
“The Kwacha closed trading on Wednesday at K10.25 and K10.30, 3.76 percent stronger than the day’s opening level,” the report reads.