Kwacha depreciates by 3pc against the dollar


THE Kwacha closed the week at K10.100 / K10.150 having depreciated by 3.06% from the opening rate of K9.800 / K9.850 on Monday.

According to Cavmont Bank Zambia daily market report, the local currency’s depreciation was on account of reduced inflows and an increase in demand.

In the short term, however, the Kwacha was expected to recoup its gains supported by expected inflows from exporters and offshore players looking to participate in Thursday’s Treasury bill auction.

The Kwacha closed at K10.100 /K10.150 representing a 0.98 percent appreciation from the day’s opening rate of K10.200 / K10.250.

Commercial banks’ aggregate current account balance increased by K313.71 million to K1, 054.72 million while the overnight borrowing and lending rate decreased by 0.97 percent to 17.40 percent.

Total funds traded on Interbank were K139.60 million.

The Central Bank continued conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K300 million.

Accepted rates were averaging6.95 percent, 14.49 percent and 16.75 percent on 3 days, 7 days and 14 days term deposits respectively.

The Lusaka Stock Exchange (LuSE) All Share Index fell by 1.79 percent to post 4,321.77 points.

On the international scene, the bank reported that copper price woes have persisted after it plummeted by US$10.50 to drive the selling price of the red metal to US$ 4,636.50 a tonne.

Cavmont reported that the price of gold on the London Metal Exchange (LME) also went down by US$13.11 to push the selling price of the precious metal to US$1,334.86 an ounce.

But the price of Brent crude oil enjoyed a negligible rise of US$0.20 and the commodity was currently selling at US$48.93 a barrel.


Categorized | Business

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