Kwacha maintains stability against the dollar


By Nation Reporter

THE Kwacha has remained stable in recent days despite other emerging market currencies coming under pressure against the dollar coupled with the slump in Copper prices owing to dampened demand from importers.

According to Cavmont Bank Zambia daily market report, the local unit has in the recent days remained unchanged trading around K10.820 / K10.870 on interbank.

For Wednesday’s trading session, the kwacha remained largely unchanged as it began the day trading at.

The bank further reports that the Kwacha closed at K10.860 / K10.910, K0.04 weaker than its opening levels.

On the money market, the bank reported that commercial banks’ aggregate current account balance decreased by K132.39 million to K720.51 million while the overnight borrowing and lending rate increased by 0.05 percent to 17.75 percent.

Total funds therefore traded on Interbank were K215.00 million.

Cavmont also reports that the Central bank continued conducting open market operations (OMO) and was looking to reduce market liquidity further by K300 million.

The accepted rate was 13.50 percent.

Meanwhile, copper price on the London Metal Exchange (LME) slightly went up on Wednesday.

According to Cavmont, a tonne of the red metal was currently trading at US$4,649.00 this was after the commodity price went up by US$124.00.

Gold price equally registered an increase of US$1.61 resulting into the price of the precious metal rising to US$1,283.65 an ounce

On the other hand, Brent crude oil price continued on its sour line and dropped by US$0.84, to push its selling price to US$48.81 a barrel.


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