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The Zambian Kwacha is expected to remain stable in the medium term, supported by increased United States dollar inflows as businesses convert funds for statutory tax payments this week.
According to Absa Bank Zambia’s daily market update issued on Thursday, the local currency held steady in a relatively quiet trading session on Wednesday, with moderate market activity.
“By 08:30 hours, the local currency was quoted at K27.9500/28.0000 on the bid and offer, respectively, and traded within these levels for the rest of the day.
“In the short term, we expect the Kwacha to remain stable, supported by increased United States dollar inflows as businesses convert funds for statutory tax payments this week,” the report stated.
On Tuesday, the Kwacha also remained firm against the dollar, with limited trading volumes and muted demand.
The market opened and maintained levels of K27.9500/28.0000 throughout the day.
Looking ahead, analysts anticipate continued stability for the local currency, with a potential upward bias driven by corporate conversions for tax obligations this week.
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