The Business Telegraph has expressed optimism that the Kwacha will strengthen further in the next few months trading below 13.
The Telegraph tells Money FM News that the local currency has been stable at 13.01 to 13.05 against the US dollar.
It says the stability has been due to the expected offshore interest in last Friday’s bond auction which did not materialize.
Meanwhile, financial expert Munyumba Mutwale of Nikiwa Capital partners has noted that a cut in the federal reserve rate by the US Feds tomorrow might strengthen the Zambian Kwacha to trade below the 13-kwacha mark.
He explains that a cut in the rate by the Feds means the valuation of the US dollar can start to slide and weaken the currency.
Mr. Mutwale says this will cause the global market to become flooded with the global currency which will work positively for the kwacha especially that the risk environment for the country has cooled off at the moment.
He was speaking in an interview with Money FM News Via Telephone.