By 
Market dynamics suggest that the Zambian Kwacha is likely to maintain relative stability against major currencies as government continues implementing strategic economic reforms.
This outlook follows the local currency’s strong performance on Thursday, when it traded firmer on the back of heavy foreign exchange inflows from offshore players, coupled with support from the Bank of Zambia, which helped ease demand pressures in the market, according to an Absa Bank Zambia market report.
“The session opened with the kwacha trading at K19.870/19.920 before strengthening by midday to K19.850/19.900 on the bid and offer, respectively,” the Bank said.
The positive momentum continued throughout the day, with the kwacha closing at K19.750/19.800—representing a 0.60 per cent gain.
Read more: US Dollar slips as geopolitical tensions ease; Zambian Kwacha weakens amid FX challenges
Bloom Intersect data also showed the local currency appreciating by 0.43 per cent to close at about K19.87 against the United States dollar.
Market analysts observed that the Kwacha regained bullish momentum, reversing losses recorded in the previous session and ending the day on a strong footing.
The local unit is expected to sustain its gains into next week, supported by robust foreign exchange inflows, largely driven by copper export receipts.
Meanwhile, regional currency movements reflected mixed sentiment. In its market commentary, Access Bank Group noted that the US dollar–South African rand (USD/ZAR) exchange rate climbed back towards 15.8000 amid a broader overnight recovery in the US dollar, which overshadowed the South African Reserve Bank’s steady policy stance.
The Bank added that although the rand’s rally had moderated due to overbought conditions on key technical indicators, the currency remained resilient, though a short-term pullback could still occur.
“Near-term bias tilts mildly weaker for the rand amid subdued risk appetite and elevated implied volatility in emerging markets. Nonetheless, potential catalysts such as US tariff rulings or stabilisation in gold prices could alter the outlook, with risks skewed toward limited depreciation if domestic fundamentals remain supportive,” Access Bank said.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA.
Comments