Kwacha expected to shed some weight, owing to month-end obligations

The local currency is expected to register a movement in the opposite direction as the demand for the US dollar pick up.

According to the FNB Zambia, this is as a result of the month-end obligations by some corporates, as they flood the money market to access the on demand foreign currency.

 

FNB made a forecast yesterday that month-end obligations by corporates are likely to reverse the current market tone.

 

“The Kwacha seems to have aligned with international markets on Friday as the US dollar remained king globally,” noted the bank.

 

FNB pointed out that the local currency’s gains from past few weeks are slowly being reversed as dollar demand continues to pick up.

 

The market opened at 18.55/18.60 and rose to 18.65/18.70 as at close of business.

The Kwacha has been performing badly in recent times, owing to the fall in exports, especially in the demand of copper at the international market.

 

The country’s industry and commerce have also been struggling with capacity utilisation, and the effects of the coronavirus pandemic.

Leave a Reply

Your email address will not be published.