Africa-Press – Zambia. The Kwacha has continued to register some gains following interventions from the Central Bank. The Bank of Zambia last week, injected 50.3 million United States dollars into the market, on Tuesday, February 6th, 2024, to save the kwacha from further depreciation.
According to the ABSA Bank Daily Report, Monday’s trading session posted some gains against the United States dollar as Bank of Zambia continued to support the market, which saw a significant drop in the corporate demand.
The report states that the market opened with the commercial banks quoting the local unit at K26.925 and K26.975 respectively, on the bid and offer, before appreciating to K26.900/ and K26.950 and closing the trading day at K26.825 and K26.875 on the bid and offer respectively.
“Near term, the Zambian currency is anticipated to trade range bound with the forces of demand and supply determining its next move,” the report indicated. Meanwhile, Access Bank also confirmed appreciation of the kwacha against the United States dollar.
The bank’s daily report said the local currency rallied against the US dollar in Monday’s trading session with the currency being quoted at K26.850 against the U.S. dollar as at 13 hours, about 0.82 percent stronger than its previous close. According to Access Bank, the Central Bank offloaded another 70 million United States dollars onto the market yesterday Monday, February 13, 2024.
“The Bank of Zambia offloaded USD 70 million onto the market, satisfying the majority of the built-up long- term hard currency demand, hence stimulating market activity and local currency appreciation. The kwacha is anticipated to extend its gains in the near term,” stated the report.
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