Business

‘Kwacha to recoup’

TRYNESS MBALE-TEMBO, Lusaka
ACTIVITY in the local currency market is anticipated to pick after the New Year holiday as the Kwacha continues trading in a narrow band of K10.95 and K11.00 in the short-term, Zanaco predicates.
The bank says the local unit is expected to continue trading flat against the United States (US) dollar in the week heading into the New Year.
“We expect overall moves in currency markets to be modest given the thin trading conditions,” the bank says in its daily treasury newsletter.
On Monday, the Kwacha remained stable and unchanged against the US dollar in thin year-end liquidity conditions.
Zanaco says commercial banks in the morning posted the local unit at K10.95 and K10.97 per dollar, unchanged from Friday’s close and the Kwacha traded side-ways for most of the day, closing at the day’s opening levels.
Similarly, Cavmont in its market reports the Kwacha remained stable and unchanged against the dollar on Monday as the currency pair opened at K10.98 and K11.00, with market activity remaining mostly flat.
The bank says despite a slowdown in demand for the greenback by most importers, the local unit has failed to post any significant gains owing to reduced inflows.
The Kwacha closed at K10.98 and K11.00, unchanged from the day’s opening rate.
On the regional front, the Botswana pula appreciated to 11.178 on Wednesday from 11.184 on Tuesday the Kenyan shilling to 102.249 from 102.299 and Ugandan shilling to 3385 from 3390.
Meanwhile, the South African rand depreciated to 15.32 from 15.29.
On the commodities platform, trading on the London metal Exchange remained closed for local holidays.

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