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The Bank of Zambia (BoZ), once again, offloaded US$6.5 million into the market partially meeting increasing demand for hard currency.
A week ago, the central bank was in the market to defend the Kwacha by offloading US$8.5 million to partially offset increasing demand for the greenback.
On Friday, the BoZ went into the market to defend the local currency by offloading US$6.5 million.
This is contained in the daily market update prepared by Access Bank Zambia.
According to the report, the Zambian Kwacha traded on the backfoot of the United States dollar in Friday’s trading session.
Read more; Central bank defends Kwacha, offloads $8.5m to support foreign exchange market
“On the market average interbank bid and offer, the USD/ZMW opened at K24.9307/24.9793 and closed at K24.9347/24.9827, respectively.
“The Bank of Zambia offloaded US$6.5 million onto the market partially meeting increasing demand for hard currency. The local unit is expected to weaken further in the near term given that dollar inflows remain low,” the report stated.
And, a report by Absa Bank showed that the Zambian currency traded on the back foot against the United States (US) dollar in Friday’s session as supply for greenback in the market remains scanty.
The Bank anticipated that the local currency was likely to post minor losses in the wake of growing demand from merchandise importers and corporates in the short term.
“Commercial banks quoted the local unit’s bid-offer at K24.900/24.950 before losing five ngwee to reach K24.950/25.000, and maintained the same levels until close of market,” according to the report.
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