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Kwacha to lose grip this week

The Kwacha is this week expected to post losses as a result of sentiments surrounding the termination of Bank of Zambia Governor’s Contract by President Edgar Lungu.
According to financial expert, Mambo Hamaundu, the pressure on the Kwacha from the US Dollar is expected to continue this week unless measures are put in place to try and subdue it.
Mr Hamaundu however said measures to subdue the pressure on the currency such as the Monetary Policy tools have already been used making it difficult to reduce the pressure.
“Beyond the aspect of the governor, there are other issues detecting demand pressures on the kwacha such as debt obligations which have resulted in the local currency losing strength significantly last week, by 6% from K18.06 to over K19.35, ” Mr Hamaundu said.
Mr Hamaundu said the depreciation was a significant deterioration in the rate of exchange to the extent that the Kwacha was rated the second worst performing currency in the world which is not a good attribute.
He further says it is possible that the currency may hit the K20 mark against the convertibles by the end of this week.
As of today the US Dollar is buying at K19.09 and selling at K19.50 while on Monday the US Dollar was buying at K18.81 and selling at K19.21.

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