You are here
Home > Business > KWACHA ON THE RISE

KWACHA ON THE RISE

A strong Corporate inflow of U.S dollars in commercial banks has enabled the Kwacha to appreciate against major convertible currencies.

The Kwacha is trading at K8.95 and nine Kwacha on the inter-bank market.

The Zambia National Commercial Bank says it expects the Kwacha to continue its bullish run against the dollar on the back of sustained dollar supply.

ZANACO expects the Kwacha to continue trading within a range of 8-Kwacha 95 Ngwee and 9 Kwacha respectively.

And Copperbelt University Economics Lecturer Lubinda Haabazoka has attributed the Kwacha’s gains to both the Central Bank’s monetary policy and Government’s fiscal policy.

Dr. Habazoka says this saw the Bank of Zambia increasing reserve ratios and interest rates to react to a weakening Kwacha last year and the long term positive yields are beginning to show.

He says increased taxes have further reduced liquidity in the economy meaning citizens’ demand for goods has reduced translating into reduced imports as most of the goods consumed in Zambia are imported.

Dr. Habazoka says the Kwacha has also been boosted by the increase in copper prices as well as increased exports of agriculture produce.

And the price of Copper on the London Metal Exchange has dropped slightly to trade at 5-thousand 8-hundred and 45 U.S dollar per tonne.

This is down from 5,863 U.S dollar per tonne at the start of business on Tuesday.

Similar Articles

One thought on “KWACHA ON THE RISE

  1. BOZ shall keep focus on growing exports and not allowing traders and contractors to externalise extra dollars at the cost of local industry.
    A strong Kwacha allows foreign contractors and traders to externalise more dollars from the amount of their payments by the government or sales in local market.

    All nations in the world interfere to keep their currency weak and not otherwise.
    There is a bumper harvest of maize and farmers that export their surplus shall be able to get a good Kwacha rate to translate their hard work into a reasonable surplus.

    Kwacha shall be allowed to drift downward to K11.00 to a US dollar.

Leave a Reply

Top