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The Bank of Zambia (BoZ) has offloaded US$68 million into the market to partially address the long growing hard currency demand from market players.
The development which happened on Wednesday assisted the Kwacha to become 0.18 percent stronger against the dollar at 23.700, recovering from ending the previous session at its weakest level in its trading history.
According to Access bank Zambia daily market update, the local currency was in choppy trade against the globally weaker U.S. dollar on Wednesday not until the Central Bank stepped in.
“At 0600 CAT today [Weddnesday], the Kwacha was 0.18 percent stronger against the dollar at 23.700, recovering from ending the previous session at its weakest level in its trading history.
“It gained 0.17 percent to trade at 30.0848 versus the sterling and firmed 0.02 percent against the rand to 1.2654,” according to Access bank.
Read more: Zambian Kwacha continues losing streak
The local currency was projected to post minor gains in the short run given that dollar inflows remain steady.
Absa bank Zambia, however, indicated that during Wednesday’s trading session, the Zambian Kwacha depreciated further against the dollar opening the session at K23.7350/23.7850.
It reported that by mid-day, the local unit was at K23.7750/23.825 where it traded till close of market.
“The Central bank was in the market to support the demand that had built up over the last few weeks but not sufficient to quench the current demand.
“In the short term, we expect the local currency to trade range bound as the supply and demand dynamics continue to play out,” it state.
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