Kwacha expected to stabilize as hard currency demand drops ahead of week’s trading activities

The Zambian Kwacha is expected to hold steady this week amid reduced demand for hard currency.

This followed slight losses recorded against the US dollar last Friday.

According to Bloomberg data, the Kwacha fell by 0.18 percent to close just under K28.200 per dollar.

However, the near-term outlook suggested that the Kwacha would respond to varying levels of supply and overall economic sentiment.

“Friday’s trading session saw the Zambian Kwacha post minor losses against the US dollar due to subdued market activity.

“The market opened with the local currency’s bid-offer quoted at K28.010/28.060 before trading lower to K28.150/28.200 around mid-day.

“The Kwacha ultimately closed the session at K28.100/28.150 on the bid and offer, respectively,” according to a daily market update from Absa Bank Zambia.

Meanwhile, the South African rand strengthened on Friday after US President Donald Trump announced plans to impose reciprocal tariffs on countries taxing US imports. Investors are also awaiting South Africa’s upcoming domestic budget.

At 1503 GMT, the rand traded at 18.32 against the dollar, about 0.9 percent stronger than its previous close.

For South African-exposed investors, a busy week lies ahead, with official fourth-quarter unemployment data, consumer inflation stats, retail sales data, and National Treasury’s annual budget presentation on Wednesday.

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