The Bank of Zambia (BoZ) on Tuesday offloaded US$50.3 million into the market, which helped to relieve some of the pressure on the strong United States dollar demand.
The Zambian Kwacha was, therefore, in bullish trade against the United States (US) dollar in Tuesday’s trading session.
Access Bank daily market update showed that the local currency opened at K27.1894/27.2394 and closed at K26.9575/27.0075 on the market average interbank bid and offer respectively.
“The Central bank offloaded US$50.3 million into the market, which helped to relieve some of the pressure on the strong dollar demand and caused the local currency to appreciate by 0.42 percent.
“The Kwacha is forecasted to extend its gains in the short run,” the report indicated.
Absa Bank Zambia, also in its daily market report, indicated that the local currency posted gains in Tuesday’s trading session as market was fairly active with the BoZ was in the market to support the growing demand.
“As market opened 08:30am, the local unit was quoted at K27.150/27.200 before gaining to K27.050/27.100 by midday and ultimately reaching K26.900/K26.950 by afternoon session where it traded until market closure.
“Given the current market dynamics, we anticipate that the Zambian Kwacha will trade range bound,” according to Absa bank.
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 MONITOR.