Kwacha expected to maintain bullish run

Mon, 29 May 2017 11:59:40 +0000

By BUUMBA CHIMBULU

SHORT-TERM outlook for the Kwacha remains positive, as further supply is expected from exporters and sellers as the month-end approaches.

The local currency has maintained its bullish performance against the major currencies as it had continued to trade within the range of K9.270 to K9.320.

According to Cavmont Bank Zambia daily market report, there is an indication from short-term outlook for a more positive performance as further supply is expected from exporters and sellers as the month-end approaches.

“The Kwacha was still largely unchanged against the U.S dollar on Wednesday, though it closed on a slightly stronger note at K9.270 / K9.320, mostly due to improved supply from corporates,” read the report.

The local unit’s performance was in tandem with other emerging market currencies such as the South African Rand which outperformed the greenback during the day’s trading session.

On the money market, commercial banks’ aggregate current account balance increased by K127.49 million to K2, 796.02 million while the overnight borrowing and lending reduced by 0.02 percent to 14.02 percent.

Total funds therefore traded on Interbank were K108.00 million.

On the London Metal Exchange (LME), copper prices which have been struggling for the past four weeks and increased following demand from China, suffered a setback during the trading session.

During the Wednesdays trading session, copper prices went down by $US3.00.

A tonne for the red metal was therefore trading at $US5, 677.50.