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On Monday, the Zambian Kwacha stabilised against the United States dollar following a period of fluctuations.
The local currency saw some reprieve as overall market activity picked up, and demand for the dollar became more subdued.
During Monday’s trading session, the Kwacha showed signs of recovery.
Commercial banks in Lusaka initially quoted the USD/ZMW interbank rate at K26.325/26.375.
However, the Kwacha gained 67.5 ngwee, closing the day at K25.650/25.700 on the bid and offer.
This stabilisation comes as the market anticipated steadiness in the near term.
Corporates are expected to convert their US dollars to meet local requirements at the end of the month, which should support the Kwacha.
The daily market update issued on Tuesday highlighted this trend, noting the increased market activity and liquidity.
In contrast, the South African rand strengthened significantly on Monday, reaching a near 13-month high.
It traded 0.7 percent stronger at 17.7375 against the dollar, buoyed by anticipation of domestic inflation data due for release on Wednesday.
This data is expected to provide insights into the future direction of interest rates in South Africa.
Interbank trading volumes increased to K880 million from K860 million during Monday’s session.
The weighted overnight interbank rate experienced a slight decline, falling to 13.49 percent from 13.52 percent.
Additionally, liquidity levels in the market improved to K2.95 billion from K2.27 billion.
Despite these positive movements, the local market remained subdued, with yields remaining flat across all tenors.
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