Kwacha holds despite pressure

zambia kwacha
zambia kwacha

The Kwacha has held on to trading within a single digit on the interbank market despite being pressured by increased dollar demand.

The Kwacha whose exchange rate against one U.S dollar stood at 9-kwacha 40 on a bid and offer last week Friday, suffered a minor setback at the start of this week.

The kwacha lost further grounds against the dollar on Monday to trade at 9-kwacha 42 ngwee to 9-kwacha 45 ngwee on the interbank market.

The Zambia National Commercial Bank-ZANACO says a strong corporate demand for the dollar weakened the Kwacha for a sixth straight day.

ZANACO says in absence of a healthy dollar inflow, the Kwacha is prone to further losses in the short term.

The Kwacha is expected to trade within a range of between 9-kwacha 40 ngwee and 9-kwacha 50 ngwee respectively.

Meanwhile, the price of Copper on the London Metal Exchange has fallen one percent to trade at 4-thousand 9-hundred and 48 U.S dollars a tonne as of yesterday.

On Friday, Copper reversed losses in Asian trading to sell as high as 5-thousand and 65 U.S dollar per tonne.