Pressure on Kwacha continues, as reports anticipate some relief from month-end, last-minute salary conversions

The financial market has continued to witness a dry spell of United States (US) dollar supply while demand for the greenback continued to increase.

The local currency was in choppy trade against the dollar in Friday’s trading session.

Access bank in its daily market report on Tuesday indicated that the Kwacha opened at K25.3559/25.4059 and closed at K25.3934/25.4416 on the market average interbank bid and offer respectively.

“The market continued to witness a dry spell of dollar supply while demand for the greenback continued to increase.

“The Kwacha is anticipated to incur minor losses in early trade given current market dynamics,” the report stated.

ABSA bank Zambia in its report showed that the Kwacha posted further losses in Friday’s trading session on the back of a build-up in importer demand from various market sectors.

It, however, indicated that the local currently was likely to continue on the same trajectory this week, but could get some support from month-end and last-minute salary conversions.

“Commercial banks in Lusaka quoted the local unit at K25.400/25.450 per dollar, compared to its previous close of K25.350/25.400 on the bid and offer respectively.

“The trading levels remained flats through the day with marginal activity in the market as corporates made their last-minute conversions paying employee emoluments as they prepare to close for industrial break,” according to the report.

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