Kwacha to trade in the range of K21.43 till month end

• Kwacha to remain in the range of K21.43 in the next three weeks.
• Exchange rate is influenced by the principle of demand and supply.
• Pressure is coming from government expenditure.

A financial expert says the Kwacha is expected to remain in the same range of K21.43 in the next three weeks of the month against major convertibles.
In an interview with Money FM News, Mambo Hamaundu noted that this is because the exchange rate is influenced by the principle of demand and supply.
Mr Hamaundu explained that looking at the demand side of the Kwacha, most of the pressure is coming from debt servicing, importation of agricultural inputs and other government expenditure.
“The Kwacha will remain in the same range of Twenty One Kwacha Forty Three Ngwee, because what influences the exchange rate is the principle of demand and supply,” he said.
He said on the supply side, there is money coming in from the mining sector; hence they will be no sudden shift in the next two weeks to warrant a significant change in the rate of exchange.
Mr Hamaundu said the rate may only change if an unexpected event occurs on the market.
He added that Kwacha has been trading in the range of between Twenty One Kwacha Four Ngwee from a week after Christmas noting that it is not accepted to increase further.
“When you see the buying rate going up and the selling rate remaining the same, it means players in the market are trying to buy more dollars due to low supply with a demand with a certain price rate,” Mr Hamaundu said.
The Kwacha is selling at Twenty One Kwacha Forty Three Ngwee per United States Dollar.

More From Author

World Bank urges Zambia to capture other benefits beyond mining sector

• World Bank is committed to supporting African countries to translate Africa’s mineral wealth into…

Read More

Kwacha gains should benefit consumers – BuyZed

• This is to ensure that consumers begin to enjoy what is produced locally.• Manufactures…

Read More

SEC attributes decline in Q4 bond trades to delayed debt restructuring process

• One of the challenges is to do with the delays in finalizing the debt…

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

IZB profit up 18.74% to K604.33 million

IZB has posted a K604.33 million Net Profit after tax for the year ended 31st…

Read More

Indo Zambia Bank declares K50 million dividend cheque

This is part of the K125 million dividend, the highest ever for 2023 financial year.…

Read More

Economist expects currency to hit K15 between April, December, 2024

  The Kwacha has been experiencing an unusual decline since introduction of the Export Proceeds…

Read More