Kwacha faces pressure against US dollar, minor losses anticipated

The Kwacha on Friday came under pressure due to the persistent increase in demand for hard currency and low inflow of dollars.

The local currency is, therefore, forecasted to post minor losses subject to market dynamics in the short term.

This is according to Access Bank in its daily market update.

“The Zambian Kwacha was in choppy trade against the United States dollar in Thursday’s trading session.
“On the market average interbank bid and offer, the USD/ZMW opened at K24.6170/24.6670 and closed at K24.6673/24.7167, respectively,” according to the Bank.

Absa Bank, however, in its similar report showed that the trading session saw the Zambian kwacha trade bullish against the greenback.

The bank indicated that this development came about as positive sentiments surrounding the country’s near-term economic position increased dollar supply in the market.

“Commercial banks in Lusaka quoted the local unit at K24.530/24.580 on the bid and offer respectively until mid-day where it traded at K24.500/24.550 and closed market on the same levels.

“Short term, the local currency is likely to trade range bound subject to forces of supply and demand,” Absa showed.

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