Kwacha set for big gains against the dollar


CURRENT trends on the exchange rate are showing that the local currency is likely to post gains in the short term as exporters and sellers look to start converting to fulfil mid-month and quarterly statutory obligations.

According to Cavmont Bank Zambia daily market report, the kwacha on Tuesday remained largely unchanged against the dollar.

The bank reported that was so because the market was characterised by inactivity from most participants, especially corporates.

The local unit opened and closed at K9.900 / K9.950.

The bank further said current trends on the market were promising to post gains for the Kwacha in the short-term.

That was because exporters and sellers looked to start converting to fulfil mid-month and quarterly statutory obligations.

On the London Metal Exchange (LME), the bank reported that copper prices posted a good recovery.

Currently, a tonne of copper was trading at US$4,827.50, this was after the red metal registered an increase of US$72.53.

Price of Brent crude oil also went up by US$0.21, making the oil trade at US$52.87 a barrel.

On the other hand, prices for gold went down by US$5.37. Currently, an ounce is trading at US$1,255.04.

Lusaka Stock Exchange (LuSE) All Share Index also declined by   0.09 percent, to register 4,381.40 points.

On the money market,  commercial banks’ aggregate current account balance increased by K36.86 million to K1,230.57 million while the overnight borrowing and lending rate declined by 0.01 percent to 16.58 percent.

The bank reported that total funds traded on Interbank stood at K99 million.