BoZ snaps up K300m from open market

Sat, 06 May 2017 15:22:50 +0000

By BUUMBA CHIMBULU

THE Central Bank on Thursday withdrew K300 million in excess liquidity from the financial market through Open Market Operations (OMO) with a view of continuing to stabilise the Kwacha which closed 0.64 percent stronger than the day’s opening levels.

The Bank of Zambia has been conducting these operations to ensure there was price stability in the financial market, thereby soothing commodity prices. Cavmont Bank Zambia daily market report indicated that the Central Bank was by Thursday still conducting OMOs.

“The Central Bank was still conducting open market operations (OMO) and was looking to withdraw K300 million in excess liquidity. Accepted rates were averaging 17 percent on 1 day,” read the report.

And the Kwacha recorded some gains against the dollar during Thursday’s trading session after receiving support from corporate sellers and exporters.  The local unit outperformed other emerging market currencies which weakened against the vehicle currency after the U.S Federal Reserve indicated that they would most likely raise interest rates in June.

The local currency later closed at K9.220 / K9.270, 0.64 percent stronger than the day’s opening levels of K9.280 / K9.330.

On the money market, commercial banks’ aggregate current account balance increased by K48.76 million to K449.71 million while the overnight borrowing and lending increased by 0.02 percent to 13.87 percent.

Total funds traded on Interbank were K292 million.