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The Zambian Kwacha is anticipated to gain stability and potentially post short-term gains as United States dollar inflows increase.
On Thursday, the Kwacha was in the red against the dollar, according to Access Bank’s daily market update.
The bank reported that, with a surge in demand for hard currency, dollar trading declined to US$1 million.
“On the market average interbank bid and offer, the USD/ZMW opened at K26.2920/26.3420 and closed at K26.3320/26.3813,” the bank stated.
Absa Bank also noted in its daily market report that the Zambian Kwacha lost further ground against the US dollar on Thursday due to increased demand for the dollar from various market players.
Commercial banks in Lusaka quoted the local unit’s interbank price at K26.300/26.350, where it traded for the majority of the session.
However, it later lost 7.5 ngwee to trade at K26.375/26.425 on the bid and offer respectively, where it closed for the day.
“Short-term, the local currency is expected to trade sideways, squarely depending on demand vs. supply,” Absa indicated.
Elsewhere, South Africa’s rand remained steady on Thursday as markets awaited the outcome of a meeting between senior African National Congress (ANC) leadership figures regarding the future of the country’s government.
The rand traded at 18.9275 against the dollar, about 0.07 percent firmer than its previous close.
The local currency had reportedly tumbled the day before when the ANC announced its intention to form a government of national unity.
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