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The Kwacha has continued to register some gains following interventions from the Central Bank, as it appreciated to trade at K23.2243 to the United States dollar.
ZANACO Bank Plc website showed that the local currency was currently trading at K23.2243/ 22.7757 per dollar.
In recent weeks/months, Zambia has been grappling with currency depreciation and economic instability, prompting the central bank to implement a series of measures aimed at stabilising the local currency, the Zambian kwacha.
Among these measures, the central bank raised the Statutory Reserve Ratio (SRR) to 26 percent from 17 percent and increased the Monetary Policy Rate by 150 basis points to 12.5 percent.
Additionally, it offloaded US$50.3 million onto the market with the sole purpose of relieving pressure on the local currency.
The interventions appear to have impacted the forex market, as proved by the sharp appreciation of the Kwacha to trade at 23.2243 per United States dollar from K25.250/25.300 it closed the day with on Friday.
According to Access bank, Friday’s trading session was characterised by a spectacular bullish run of the Zambian Kwacha that saw the currency appreciate dramatically in contrast to its performance in recent months.
“This was on the back of improved flows from the market and subdued demand as buyers were on the fence anticipating further appreciation.
“Market opened with the local unit trading at K26.050/26.100 before gaining to K25.250/25.300 and closing the day at K24.700/24.750 on the bid and offer, respectively. The short-term expectation is for the Kwacha to trade range-bound against the greenback subject to market forces,” the bank stated.
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