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The Zambian Kwacha is projected to maintain its current trajectory against the US dollar, driven by increased demand from key economic sectors.
During Friday’s trading session, the Kwacha declined further against the US dollar due to heightened demand from large corporate entities and other market participants.
According to Absa Bank Zambia’s daily market update, the Kwacha was quoted at K25.5250/25.5750 per dollar on the interbank market and slipped to K25.575/25.625 per dollar by midday, where it remained until market closure.
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“Given the noticeable increase in demand for dollars from key sectors of the economy, it is expected that the Zambian Kwacha will continue to trade on the same trajectory,” the report stated.
Access Bank Zambia’s daily market report noted that dollar trading rose to US$8.25 million, with demand for hard currency continuing to outpace supply.
In the short run, a declining trend for the local unit was anticipated.
“The Zambian Kwacha lost more ground against the US dollar in Friday’s trading session. Based on the market average interbank bid and offer, the USD/ZMW began trading at K25.5321/25.5821 and ended at K25.6181/25.6677, respectively,” Access Bank reported.
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