Zambian Kwacha continues poor run, as liquidity levels drop to K1,800m

As the year 2023 commences, the Zambian Kwacha is anticipated to continue trading on the backfoot with evidence build up in the United States (US) dollar demand amid subdued inflows.

At market open, commercial banks in Zambia’s capital Lusaka quoted the local currency at K18.030/18.080 per greenback.

Read more: Zambian Kwacha continues poor run against the dollar, trades K17.79

This is according to the Absa Bank Zambia market update.

The report indicated that the Kwacha continued to post losses as the year 2022 came to an end on the back of a continued surge in dollar demand from multinational companies and merchandise goods importers from various sectors of the economy.

On the money market, the volumes of funds traded on the interbank in Friday’s session was down to K545.00 million from K625.00 million, as the weighted overnight interbank rate reduced to nine percent from 9.03 percent.

It indicated that the liquidity levels in the market reduced significantly to K1,800.70 million from the K4, 518.29 million seen in the previous session.