By BUUMBA CHIMBULU
MARKET liquidity has increased to K2.44 billion as supply from the Bank of Zambia (BoZ) is notably higher and adequate to cover the present demand for the local unit.
Commercial bank’s aggregate account balances increased to K2.44 billion from K2.29 billion, according to the Access Bank Zambia market report.
“The average Overnight Interbank rate also inched higher to 8.14 percent from 8.06 percent the previous day. The total interbank volume traded on the money markets decreased to K180 million from K412 million,” Access bank stated.
On the foreign exchange market, the bank indicated that the Kwacha closed posting some gains for the trading session last Friday at 17.059/17.109 against the USD having opened at 17.128/17.178.
It stated that the local unit was expected to trade range-bound in the absence of central bank intervention which remained the best support for further gains.
According to the bank, supply from the Central Bank was notably higher and adequate to cover the present demand.
The Central Zambia bought K3.85 billion from the market at 8.50 percent overnight.
The central banks support played a key role in the performance of the local unit on Friday. The BoZ was able to absorb the K1.40 billion it sought to raise at the Thursday October 7 Treasury bill auction.
This is after having received K3.10 million in total bids at face value (K2.77 billion at cost).
Across all tenors, the money market papers rallied further at an average 200 basis points.
Foreign exchange faced with much intervention from the central bank during the Thursday trading session, the Kwacha still posted a marginal loss by end of trading.
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