• Kwacha continued on the same trajectory in Friday’s trading session
• Local unit opened the day trading at between K21.38-21.430 per dollar,
• Liquidity levels in the market continued to increase in Friday’s trading session
Absa Bank Zambia says the Kwacha continued on the same trajectory in Friday’s trading session as it added to its previous day’s losses against the greenback.
According to the Absa Zambia Market Update the local unit opened the day trading at between K21.38-21.430 per dollar, 1 ngwee shy from Thursday’s close, the Kwacha traded firm throughout the day to close unchanged as corporates seeking dollars stayed on the fence in hope of some inflows from exporters.
“As we enter into a fresh month, we anticipate the Kwacha to trade defensively in the near term as dollar demand lingers on,” the bank said in a statement.
The Bank further said the liquidity levels in the market continued to increase in Friday’s trading session following the Treasury Bill Auction held on Thursday, 28th January, 2021 moving to K2, 119.41 Million from K1, 901.76 Million.
It added that the volumes of funds traded on the interbank adversely reduced to K507.00 Million from K696.00 million seen the previous day while the he weighted overnight interbank rate was little changed at 8.44%.
The 02/2021 T-bill auction was held on Thursday, 28th January,2021 with an auction size of K1,300 Million on offer.
“The auction was undersubscribed with only K744.88 Million allocated at cost and Yields remained unchanged across all tenors with an exception of the 91 days which was little changed at 14.03%,” the statement read.