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Despite the optimism surrounding the approval of US$189 million second tranche from the International Monetary Fund (IMF ) after meeting some of the debt restructuring conditions, the Kwacha is poised to break the K19 psychological barrier.
According to Tuesday ZANACO newsletter, the Kwacha looks poised to to break the K19 barrier against the United States dollar but maintained that some supply flows trickling into the market might delay the attainment of this mark.
“Zambia’s Kwacha was little unchanged on Monday, but foreign exchange market pundits projected that it was likely to weaken due to sustained dollar demand from corporate importers and low inflows of the US currency,” it stated.
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ZANACO newsletter shows that commercial banks quoted the Kwcaha at K18.83/18.87 per dollar.
The Kwacha was reportedly marginally slipped to end the day at K18.87/18.92 per dollar in that order .
Last week the IMF announced that Zambia had qualified for the delayed US$189 million under the Extended Credit Facility after attaining the debt restructuring condition with some of its international creditors, which raised optimism that the Kwacha might gain significantly.
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