By 
Money in circulation increase on Monday, from a low of K1.6 billion, as Kwacha adds on to its previous losses.
The liquidity levels in the market moved upwards to K3.438 billion from K1.583 billion the previous day, Absa Bank Zambia Plc market update stated.
It indicated that the volumes of funds traded on the interbank in Monday’s session decreased from to K580 million from K620 million, with the weighted overnight interbank rate reducing from nine percent to 8.81 percent respectively.
On the local currency, the report indicated that the Zambia Kwacha added on to its previous day’s losses against the greenback on Monday, December 12, 2022.
This was mainly due to a continued build up in dollar demand from large corporate importers coupled with the high levels of local money market liquidity.
As business opened Monday, December 12, 2022, the Kwacha was quoted at K17.350/17.400 to the United States (US) dollar and weakened gradually throughout the trading session to finally close the day at K17.400/17.450 on the bid and offer respectively.
The report indicated that with the Bank of Zambia (BoZ) intervention not enough to cushion the high demand on the day.
“Near the term, we anticipate the local unit to trade on the defensive against the US dollar with a bias to post minor losses in the absence of healthy dollar inflows,” it stated.
Today, Tuesday, December 13, 2022, the local currency was quoted at K17.263/17.594 on bid and offer respectively.
Read more: Zambian Kwacha continues poor run against the dollar, trades K17.79
Comments