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Kwacha gains against US dollar

THE Kwacha has continued to gain momentum, with yesterday’s treasury bill auction expected to boost it further, Zanaco notes.
According to the bank’s daily treasury, the local unit is expected to hold steady against the United States dollar, keeping within the K9.75 and K9.85 range on the interbank with additional help from the treasury bill auction.
On Wednesday, the Kwacha gained against the dollar for a second day as month-end dollar supply continued while traders said low dollar demand supported the local unit.
“At the close of trade at 15:30, commercial banks posted the Kwacha at K9.78 and K9.83 against the dollar, stronger than Tuesday’s close of K9.80 and K985. It gained 2 ngwee on the day having touched an intraday high of K9.77 and 9.820 on the back of strong corporate dollar supply,” the bank says.
In the local money market, liquidity conditions have remained fairly high despite the decrease from about K1.46 billion to K1.35 billion and the amount of traded funds increased to K113.50 million from K86.50 million.
The weighted average overnight interbank lending rate marginally dropped to 16.48 percent from 16.56 percent.
Given the recent heightened liquidity levels, The Bank of Zambia has continued being active on the open market operations as it seeks to mop out excess liquidity.

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