Absa bank Zambia says the Kwacha closed the week on a stable note with little movement seen in the currency pair.
According to the Bank’s Daily Market update report, forces of demand and supply continued to dictate the local currency’s drive on the day but dollar appetite from importers outweighed supply.
“Opening the day at K20.600/K20.650, the local unit lost some ground to close 3 ngwee shy at K20.63/K20.68 on the bid and offer respectively. As the week commences, we anticipate the local unit to trade in a tight band with a bias to post slight gains on the back of upcoming tax obligations,” the bank said.
It stated that the liquidity levels in the market increased in Friday’s trading session moving to K4, 321.60 Million from K4, 182.72 million, while the volumes of funds traded on the interbank decreased further to K108.50 Million from K129.00 Million seen the previous day.
The weighted overnight interbank rate was unchanged at 8.02%.
“The local market remained subdued in Friday’s trading session with yields remaining unchanged. There is however a T-bill auction scheduled for Thursday with an auction size of K1300 Million on offer.”