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The Zambia Kwacha is anticipated to trade in the range of K19.800/20.200 to the United States (US) dollar in the upcoming weeks.
This means that the local currency will touch levels last seen in July 2021 of K19.800.
This is as a result of continued pressure on the Kwacha to the dollar as existing market trends persists, prompting it to extend its losses.
Banking on month end inflows for revival as corporates pay their taxes, the local currency has continued to lose ground, quoting it at K19.625/19.675 to a dollar.
Read more: Zambian Kwacha battles to stay stable, loses 2.5 ngwee to close at K19 against the dollar
The financial market have projected that the Kwacha was expected to follow a downward trajectory in the short term due to current lack of dollar inflows and rising demand for hard currency.
Access Bank in its treasury market update indicated that the local currency was expected to be quoted at K20 per dollar
“The Kwacha’s value slumped against the U.S. dollar in Thursday’s trading session. It opened at 19.630/19.680 and closed at 19.700/19.750 on the market interbank bid and offer respectively.
“The local unit is anticipated to trade in the range of K19.800 /20.200 in the upcoming week; touching levels last seen in July 2021,” it stated.
Meanwhile, Absa Bank Zambia Plc anticipated that the local unit would trade defensively in the near term, but mentioned that it might get some support from month end inflows.
According to the bank, the Zambian Kwacha extended its losses against the dollar in Thursday session as demand continued to outweigh the supply.
“At market open, commercial banks in Lusaka quoted the Kwacha at K19.625/19.675 and lost ground by mid-day to trade at K19.650/19.6700 to the dollar.
“By the afternoon session the local unit weakened by 5 ngwee to finally close market at K19.675/19.725 on the bid and offer respectively.
“We anticipate that the local unit will trade defensively in the near term but might get some support from month end inflows,” it stated.
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