Agri-business Business

Kwacha remains stable, says FBZ

THE Kwacha is expected to be stable against the United States dollar in the short term due to improved greenback inflows as corporates settle month-end tax obligations, Finance Bank Zambia has observed.
In its daily market update, the bank says the local unit is expected to trade in the range of K11.37 and K11.39.
“The local unit traded stable through the day before closing at K11.37 and K11.395. Dollar flows have improved slightly due to month-end corporate activity. This trend will most likely characterise this week with Kwacha seemingly bullish in intra-day trade,” the statement reads.
Finance Bank Zambia, however, says the Kwacha will be biased towards being stable to weak in the medium-term.
Similarly, Zanaco in its daily treasury newsletter says in the short-term, expectations are for the Kwacha to continue trading between K11.33 and K11.45, with dollar demand expected from corporates and the interbank market.
On Wednesday, the local unit was largely flat against the dollar in thin trading, and minimal trading activity continued to characterise both the interbank market, as well as action from corporates.
The bank says the Kwacha eventually closed at K11.37 and K11.39 on bid and offer respectively, unchanged from its opening level.
Cavmont Bank in its market report also says the Kwacha on Wednesday closed at K11.37 and K11.39 indicating a K0.01 weaker than the day’s opening levels.
The bank says despite an increase in dollar supply on interbank, the local unit failed to make any significant gains and later traded in the range of K11.35 and K11.39 during the afternoon.
On the regional front, the Botswanan pula appreciated from 11.31 yesterday to 11.29 on Wednesday, Kenyan shilling from 101.46 to 101.34 while the Namibian dollar depreciated from 15.55 to 15.56 and the South African rand from 15.552 to 15.555.
However, the Nigerian naira remained unchanged at 1990.05.

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