PRESSURE is expected to continue mounting on the Kwacha as demand continues to outweigh supply, a financial market analyst says.
Zanaco Bank says the Kwacha, which on Friday recorded a sharp depreciation, closing at K12 .35 and K12.27 on bid and offer, respectively, was yesterday expected to continue trading on a downward trend with trading projected between K12.30 and K12.50 on the interbank.
“Today, [Oct 5th] pressure on the Kwacha is likely to continue in the absence of an increase in dollar supply,” the bank says in its daily treasury.
A survey from selected bureaux de change revealed that the local unit was in the range of K12:00 and K12.40.
At Lusaka’s Golden Coin Bureau, the Kwacha was pegged at K12.00 and K12.30 on bid and offer, respectively, while at FX bureau the local unit was fetching K12.20 and K12.40 for a dollar.
In other markets, the Kenyan shilling and the South African rand recorded marginal appreciation yesterday, with the shilling trading at 103.4345 KES from 104.2204 KES recorded the previous session and the rand at R13.6400 from R13.8700.
The Ghanaian cedi traded at 3.73 GHS yesterday, maintaining the same level from the previous session, according to interbank foreign exchange market quotes while the Nigerian naira traded at 198.7148 NGN against the dollar.