Kwacha continues to depreciate

Bank of Zambia kwacha
Bank of Zambia kwacha

Zambia’s currency, the Kwacha continued its retreat against the United States dollar last Friday due to the continued dollar demand on the interbank market.
The local unit opened trading at K5.755 to K5.785 before depreciating to K5.770 to K5.800.

According to Cavmont Capital Bank market report released today, the local currency is likely to continue being under more pressure in the coming days from strong importer demand.

This is according to the market report posted on the bank’s website and monitored by ZANIS in Lusaka today.

The bank’s aggregate current account balance reduced by K565.03 million to K1, 438.99 million while the cost for interbank borrowing was up by 0.04 percent to 10.04 percent.

Funds traded on interbank were K119.50 million.

The Bank of Zambia (BoZ) on Friday opened the open market operation (OMO) market offering term deposits to assist reduce excess liquidity experienced in the last two months.