Kwacha gains by 2pc against the dollar

Thu, 29 Sep 2016 09:25:42 +0000

THE Kwacha posted a gain of 1.53percent against the US dollar following increased inflows from exporters and sellers

According to Cavmont Bank Zambia daily market report, the currency pair opened at K9.950 / K10.000 and looked set to remain range bound on the back of subdued market activity.

However, by noon, the vehicle currency was being quoted at K9.850 / K9.900.

The Kwacha closed at K9.800 / K9.850 and is likely to strengthen further should supply continue to outweigh demand.

On local money markets, Cavmont reported that commercial banks’ aggregate current account balance increased by K614.85 million to K1459.02 million while the overnight borrowing and lending rate increased by 0.01percent to 16.70percent.

Total funds traded on Interbank were K86.50 million.

The Central Bank was still conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K300 million.

Accepted rates were averaging 14.19percent on a 7 days term deposits.

The Lusaka Stock Exchange (LuSE) All Share Index rose marginally by0.004 percent to register 4,458.74 points.

On the international scene, the bank reported that copper price on the London Metal Exchange (LME) continued on its downward spiral and on Tuesday dropped by US$27.50 to drive the selling price of the red metal to US$4,801.50 a tonne.

The same was true of gold as the price of the precious metal fell by US$2.40 to push the selling price to US$1,335.84 an ounce.

The price of Brent crude oil however rose by a negligible US$0.25 and the commodity was presently selling at US$46.81