Zambian Kwacha struggles against dollar, amidst supply shortages, to trade above K27

The Zambian Kwacha has continued to face challenges against the United States (US) dollar.

Absa Bank Zambia predicted further depreciation in the short term due to a scarcity of US dollar supply amidst increasing demand.

Commercial banks in Lusaka quoted the local unit at K27.075/27.125 before it weakened to K27.200/27.250 by the session’s close.

Read more: Bank of Zambia dumps $6.5 million into foreign exchange market to shore up value of Kwacha

On Thursday at 08: 40 hours, the local currency was trading at K27.08/27.63 to the greenback.

On Wednesday, the Kwacha held steady against the dollar as demand and supply balanced out. Commercial banks maintained rates at K27.075/27.125 throughout the day.

However, the near-term outlook suggested stability contingent upon consistent inflows.

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