Business

Kwacha weakens slightly

NOMSA NKANA, Lusaka
THE Kwacha yesterday weakened slightly on reduced dollar inflows and increased dollar demand on the market, a financial market player says.
On Tuesday, the Kwacha recorded depreciation against the United States dollar as demand for the dollar increased on the interbank market.
According to the Zanaco Bank daily treasury update, the Kwacha, which has previously been trading below the 10 Kwacha mark, yesterday opened the trading session with a bearish outlook against the greenback, trading at K10.15 and 10.20 on bid and offer, respectively.
The local unit however depreciated further to K10.20 and10.30 on growing demand for the dollar by commercial banks and corporates.
“Today, the Kwacha is expected to weaken slightly on reduced dollar inflows and increased dollar demand on the market. Trading range should be between K10.250 and 10.450 in the near term.” it said.
Liquidity has continued edging upwards, closing at K1 270.25 million from K1 226.69 million.
The amount of funds traded by commercial banks reduced to K271.40 million from K401.60 million.
Funds in the market were trading at 18.24 percent from the previous day’s 18.21 percent.
With increased liquidity levels in the market, the cost of interbank funding is expected to drop to levels below the 18.20 percent in the near term.

Tags

Facebook Feed

Ad1