Kwacha consolidates its gains against the dollar

By Nation Reporter

THE Kwacha on Monday consolidated its gains further against the worlds’ reserve currency as the local unit received further support from corporate sellers, coupled with tight liquidity in the money markets.

According to Cavmont Bank Zambia daily market report, the local currency began trading at K10.050/K10.100, but was later being quoted at K9.900/K9.9500 by noon.

The Kwacha closed at K9.850 / K9.900, K0.2 stronger than the day’s opening levels and is likely to post further gains should supply continue to outweigh demand.

The bank also reported that commercial banks’ aggregate current account balance decreased by K18.31 million to K547.61 million while the overnight borrowing and lending rate increased by 0.04 percent to 18.00 percent.

Total funds traded on Interbank were K290.00million.

The central bank of Zambia had reduced its Open Market Operations (OMO) and had been out of the market.

The Lusaka Stock Exchange (LuSE) All Share Index remained unchanged at 4,750.65 points.

On the international scene, the bank reported that the price of copper suffered a jolt as its price fell by US$115.00 to push its selling rate to US$4,872.50 a tonne.

The same fate was suffered by gold whose price dropped by US$2.77 to trade at US$1,329.73 an ounce.

The price of Brent crude oil too marginally dropped by US$0.13 and the commodity was now selling at US$46.73 a barrel.