Kwacha stabilizes against the dollar


By Nation Reporter

THE Kwacha remained relatively stable despite increased dollar inflows on the interbank as well as from some exporters who were looking to settle month end obligations.

According to Cavmont Bank Zambia daily market report, the currency pair opened at K10.025 / K10.075, appreciating to K10.000 / K10.050 by afternoon.

Market activity was mostly subdued on the buy side and this gave further support to the local unit.

The Kwacha closed at K10.000/K10.050, K0.025 stronger than the day’s opening levels.

On money markets, the bank reported that commercial banks’ aggregate current account balance increased by K89.83 million to K844.16 million while the overnight borrowing and lending rate increased by 0.26 percent to 16.69 percent.

Total funds traded on Interbank were K211.20 million.

The Central Bank was still conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K400 million.

Accepted rates were averaging 14 percent and 16.75 percent on 7 and 14 days term deposits respectively.

The Lusaka Stock Exchange (LuSE) All Share Index rose by 0.14 percent to register 4,456.51 points.

The bank, on the international scene, reported that the price of copper collapsed again on the London Metal Exchange (LME) by US$20.00 to drive the selling price of the red metal to US$4,829.00 a tonne.

The same was true for Brent crude oil which went down by US$1.25 and the commodity was currently selling at US$46.56 a barrel.

Gold too suffered a marginal drop of US$1.11 to post the selling price of the precious metal to US$1,338.30 an ounce.

Categorized | Business

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