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Kwacha (K) depreciates by 4.2% in third quarter.

The Bank of Zambia says the Kwacha has depreciated by 4.2% for the third quarter as a whole to an average of K10.31 from K9.89 in the second quarter.
BOZ Governor Dr. Denny Kalyalya says it depreciated sharply by 19.5% against the US Dollar in september from a 2.9% depreciation for most part of the year up to end August.
He says the local currency however appreciated against the Great British Pound and the South African Rand and declined against the Euro and the US Dollar.
The Bank Governor says the rapid decline in the Kwacha against the dollar is due to the sustained increase in the pipeline demand for for oil procurement.
Dr. Kalyalya adds that other contributing factors to the depreciation of the currency include a hike in the US Federal Fund Rate which strengthened the dollar, and sustained negative market sentiments which he says t arise from the downgrade of Zambia’s Credit rating.
He said this during a presentation announcing the Monetary Policy Rate at the Bank Auditorium in Lusaka.

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