Business

Treasury bill auction to boost kwacha – analyst

KALONDE NYATI – Lusaka
EXPECTED dollar inflows from foreign investors participating in the treasury bill auction is expected to boost the performance of the kwacha, a financial analyst says.
Zanaco Bank says the local unit is expected to continue trading favourably against the dollar as foreign investors offload the greenback on the market.
“The kwacha is expected to continue trading with a bullish tone against the US dollar on expectation of offshore greenback inflows from foreign yield hunters participating in the Treasury bill auction,” the bank says in its daily treasury.
The local unit on Wednesday closed on a healthy note owing to significant dollar inflows from corporates.
“The kwacha posted gains against the greenback on Wednesday, helped by healthy corporate inflows and a sell off on the interbank market. The afternoon session witnessed increased corporate inflows to see the kwacha close at K6.33 and K6.35 on the bid and offer respectively,” the bank says.
On the commodities market, Reuters reports that Brent crude oil slipped below $66 a barrel on Wednesday, just above a five-year low, on mounting signs of oversupply and lackluster demand as global economic growth falters.
Brent futures for January fell to a low of US$65.68 a barrel, down US$1.16, before recovering slightly to trade around US$65.90 by 0850 GMT.


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