Kwacha comes under more pressure from the dollar


THE Kwacha has come under more pressure from the US Dollar due to shortage in supply, according to Cavmont Bank Zambia daily market report.

The USD/ZMW currency pair opened at K10.020 / K10.070 on Friday and remained relatively stable throughout early trade.

However, by noon the local unit breached the K10.200/$1 psychological barrier following strong demand on interbank.

The Kwacha closed at K10.200 / K10.250, K0.15 weaker than Monday’s closing levels of K10.050 / K10.100.

Commercial banks’ aggregate current account balance decreased by K217.86 million to K1,004.22 million while the overnight borrowing and lending rate increased by 0.28 percent to 17.54 percent.

Total funds traded on Interbank were K168.90 million.

Meanwhile, Thursday’s Treasury Bill auction was under-subscribed by 30.24 percent, with K439.50 million being bid for out of K630.00 million which was being offered by the Central Bank.

However, yield rates were largely unchanged compared to the previous tender.

The bank also reported that the Lusaka Stock Exchange (LuSE) All Share Index remained unchanged at 4, 350.51 points.

On the international scene, Cavmont reported that copper price posted a modest rise of US$13.50 to push up the selling price of the red metal to US$4,764.00 a tonne.

The price of Brent crude oil fell by US$0.49 and the commodity was now trading at US$45.76 a barrel.

The bank further reported that the price of gold also suffered a slight jolt of US$9.79 to push the selling price of the precious metal to US$1,311.71 an ounce.