• Most businesses go on industrial break in the last two weeks of December.
• This may reduce pressure on the Kwacha.
• Therefore the currency is likely to close the year within the K24 range.

An Economist says the Kwacha is not likely to touch K25 mark as the year comes to an end but may continue to depreciate at a slower pace.
Speaking in an interview with Money FM News, Gerald Soko noted that most businesses go on industrial break in the last two weeks of December and this may reduce pressure on the Kwacha, therefore the currency is likely to close the year within the K24 range.
Mr. Soko stated that the continued weakening of the local unit is a worry because it has been the major driver of the current high inflation rate.
“Today we are sitting around K24 and in the last two weeks of December obviously businesses go on industrial break maybe the pressure may reduce on the Kwacha.”
“It may continue to depreciate but at a slower pace but we may close the year within the K24 range, I don’t think we are going to touch K25,” Mr. Soko stated.
He added that the move has prompted Bank of Zambia to respond by tightening monetary policy and this has implications on the lending rates in the market and overall economic activity going into 2024.
“The weakening of the currency has been the major driver of what is happening to the inflation rate and so we have seen the Central Bank responding by tightening monetary policy which is also sort of not news you want to hear as private sector because it means borrowing costs will go up. So it’s a worry, hopefully we can get a solution that is going to give us the relief itself.”
“Otherwise, the continued depreciation of the Kwacha is a worry in terms of inflation, in terms of what the Central Bank is doing to monetary policy which has implications on the lending rates in the market and overall economic activity going into 2024.
The US Dollar is currently buying at K24.26 Ngwee and selling at K24.73 Ngwee.