Kwacha depreciates by 2.37% in early days of August

The Zambian Kwacha has so far depreciated by 2.37 percent in the month of August, according to the financial market.

The depreciation had been attributed to mainly to the trade-off between minimal dollar inflows and increasing dollar demand, says Access bank Zambia in its daily market update.

Access predicated that the local unit was to follow a downward trajectory in the short run.

Read more: Kwacha strengthens against dollar, as offshore market players settle bond purchases

“The Kwacha held its ground against the US dollar in Friday’s trading session. It opened at K19.3916/19.4391 and closed with the same levels on the market average interbank bid and offer respectively,” it stated.

Absa bank Zambia indicated that the Kwacha traded steady in Friday’s trading session against the greenback amid moderate market activity from cooperate and retail players.

It anticipated that the local unit in the near term would trade range bound as tax payers were expected to offer some support.

“Opening the day at K19.350/19.400 to the dollar, the local unit traded firmly in the morning session but lost some ground in the afternoon to close the day 17.5 ngwee lower at K19.525/19.575 on the bid and offer respectively,” according to Absa.

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