Market participants in need of hard currency are concerned over the Kwacha’s trajectory, while customary liquidity suppliers who were previously eager to offload their dollar held onto their positions.
This is after the Zambian Kwacha extended its loses in Friday’s trading session due to increased appetite for the greenback from corporates and other market players as supply slowed down.
Absa Bank Zambia in its daily market update indicated that the local unit was anticipated to trade in a tight band in the near term but could trade on the back foot in the absence of healthy dollar inflows.
“At 08:30 hours on Friday, commercial banks quoted the Kwacha at K18.575/18.625 per dollar and traded under pressure throughout the session losing 20ngwee to close the day at K18.775/18.8252.5 on the bid and offer respectively,” Absa said.
Access bank Zambia stated that the local unit was expected to incur minor losses in the short term.
“The Kwacha lost some ground against the United States dollar in Friday’s trading session. It opened at K18.5131/18.5631 and closed at K18.6131/18.6613 on the market average interbank bid and offer respectively,” the bank indicated.
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