Kwacha strengthens against dollar, as offshore market players settle bond purchases

The Kwacha rallied against the United States dollar in Tuesday’s trading session, strengthening by 1.08 percent

The local currency strengthened by 1.08 percent as a result of increased dollar trading which mostly stemmed from settlement of bond purchases by offshore market players.

Access bank Zambia in its Wednesday daily market update indicated that the local currency opened at K19.400/19.450 and closed at K19.150/19.200 on the market interbank bid and offer respectively.

“The Kwacha is predicted to hold on to its recent gains in the short run,” the bank stated.

Read more: Bank of Zambia moves to check Kwacha volatility, offloads $6 million into forex market

Absa Bank Zambia stated that the Kwacha extended its winning streak against the Greenback in Tuesday’s trading session.

According to Absa, the currency pair closed the day at K19.025/19/075 on the bid and offer respectively on the back of sustained supply to match demand for the day.

“At 08:30, commercial banks quoted the local currency at K19.450/19.500 per dollar. By mid-morning, the Kwacha appreciated further to trade at K19.225/19/275 on the bid and offer respectively.

“In the short term, we anticipate the local unit to trade steady with a bias to post minor gains as corporate entities offload their dollar holdings to meet payroll as well as tax obligations,” the bank indicated.

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