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Kwacha in dramatic comeback


AFTER months of trading above K22 against the United States dollar, the Kwacha has bullishly bounced to below K21, as the market continues to witness greenback inflows. And Government says the continued stability and recent appreciation of the Kwacha largely reflects changes in the supply of foreign exchange and broad improvements in market expectations. The upward trend has continued since the start of the week, with the biggest jump being recorded yesterday, driven by increased appetite for government securities and corporates remitting taxes to Zambia Revenue Authority (ZRA). A survey conducted by Zambia Daily Mail in some bureaux de change in Lusaka revealed that the local unit was trading at K20.7 against the dollar. At Unifinance Bureau de Change, the Kwacha was pegged at K21.00 and K22.00 on bid and offer, respectively. At Toprate Bureau de Change, the Kwacha was pegged at K20.80 and K21.21 to the dollar on bid and offer, respectively, and Golden Coin was buying and selling at K20.80 and K21.20. Absa Bank Zambia said in its market update yesterday that significant United States dollars inflows have characterised the market that CLICK TO READ MORE