By Nation Reporter
THE Kwacha is expected to improve its performance on the foreign exchange in the coming few weeks as corporates convert to meet mid-month statutory obligations.
According to Cavmont Bank Zambia daily market report, the local currency would rebound in the few coming few weeks as most corporates would be converting mid-month statutory obligations.
This followed the poor performance of the Kwacha in the last one week characterised by demand for the dollar on the market after a resurgence in the middle of April.
According to the report, the past week had seen the Kwacha depreciate by 2.40 percent after opening at K9.640 / K9.660 on Tuesday last week.
With little or no change in the supply of the greenback, Friday’s trading session saw the Kwacha dip further against the dollar.
Despite the local currency opening trade at K9.760 / K9.780, by noon the currency pair was being quoted at K9.800 / K9.820.
The local currency later closed the week at K9.820 / K9.840.
On the money market, the bank reported that commercial banks’ aggregate current account balance reduced by K94.15 million to K1,268.55 million while the overnight borrowing and lending rate decreased by 0.47 percent to 24.53 percent.
Total funds traded on Interbank stood at K75.00 million.
Meanwhile, copper prices have continued to fluctuate on the London Metal Exchange (LME) despite registering a remarkable rebound in the last few weeks.
The latest Cavmont report showed that the price of red metal had gone down by $24, pushing its trading price to $4,783 a tonne.
A barrel of Brent crude oil was currently fetching $44.75, this was after it registered a decrease of $1.09.
According to the report, gold price also continued to fluctuate and on Friday posted a drop of $0.48, to trade at $1,281.41 an ounce