Strong importer drive signals negative Kwacha performances!
Dear Editor,
THIS particular business week has been observed on the Kwacha’s trading patterns. The local market performance has been experiencing very low economic profile, at the back of the much-appetising US Dollar demand, posing very unstable balance of scale against the local currency.
The local currency has failed to show positive movements in this particular week, as the market has mainly been subdued by the high levels of participations coming from the buyers and importers, who have escalated high demands for the green currency on the local market coupled with very low activities from the export sides of trade despite having very attractive copper prices on the international market.
The number of speculators seen in the economy have equally rendered Kwacha’s performance in weak spots, this trend has also characterised with our poor trade fundamentals affecting local production and export of none traditional goods, a case which is not striking a good balance within the local economic structure.
On the other hand, we may likely see October’s Purchase Manager’s Index (PMI) to go up on account of a huge importer drive by most players, as we head towards the end of the calendar year.
Meanwhile, the domestic currency might also likely continue seeing its quarterly-end backdrop of US Dollar conversions from the mining players, who are committed in meeting up on their quarterly statutory obligations this month of September.
KELVIN CHISENGA.
Author
