Moves to save Kwacha yield poor returns as currency depreciates further

The Zambian Kwacha has continued to post losses against the greenback, as Friday reports showed a sustained decline against the US dollar.

At 08:30 hours commercial banks quoted the Kwacha at 19.975/20.025 per dollar, 5 ngwee shy of the previous days close of K19.925/19.975 to the dollar.

It traded unchanged until close of business, according to Absa Bank Zambia market update.

“In the near term, we anticipate to see the local unit trade on the back foot due to low dollar supply to meet the build-up in demand,” the report indicated.

On the money market, it indicated that the volumes of funds traded on the interbank in Friday’s session reduced to K483.00 million from K509.00 million, with the weighted overnight interbank rate dropping as well from 9.35 percent to 9.33 percent.

It stated that the liquidity levels in the market increased from K1,907.07 million to K2,496.37 million seen in the previous session.

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