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Kwacha under pressure

The Kwacha has continued to come under pressure against the U.S dollar following yesterday’s increased demand for the greenback on the interbank.

The local unit opened the day trading as it was buying at twelve kwacha twenty seven ngwee and selling at twelve kwacha thirty two ngwee but was soon trading at twelve kwacha forty seven ngwee and buying at twelve kwacha fifty two ngwee by noon.

Despite the movement, most corporates have remained cautious hoping the Kwacha will make a rebound.
The local unit closed the day at twelve kwacha forty seven ngwee and selling at twelve kwacha fifty ngwee.

And Economist Chibamba Kanyama tells Money FM News via telephone that there are several factors that are leading to the local unit to continue depreciation.

Mr. Kanyama says one of the reasons is that some individuals and entities are holding on onto the US Dollar notes with the pretext that it will continue to depreciate so that they have some gains in the near future.

He says the continued depreciation of kwacha is an indication there are few foreign currencies in circulation.

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