• It has opened the market trading at K18.16 Ngwee and K18.51 Ngwee on the bid and offer respectively.
• Depreciation of the Kwacha is a result of high US dollar demand against limited supply.
• There is pressure of the Zambian Kwacha and that can be attributable to the depreciation of the currency.

The Kwacha has continued to lose minimal value against key convertibles such as the United States dollar.
It has opened the market trading at K18.16 Ngwee and K18.51 Ngwee on the bid and offer respectively.
According to an Economist, losses in the Kwacha in terms of performance have been observed for the past one week.
Dr. Lubinda Habazooka noted that the current depreciation of the Kwacha is a result of high US dollar demand against limited supply owing to continued imports.
Dr. Habazooka told Money FM News in an interview that importation of fertilizer and fuel is putting pressure on the local currency, resulting in the depreciation being witnessed.
He also said another factor contributing to the weakening of the currency is the fading away of inflows that came at the end of the first quarter when companies where making their provisional tax payments.
“It’s not very clear what might be the cause for current Kwacha depreciation but it seems that there were inflows that came at the end of the first quarter when companies where making their provisional tax payments and also probably intervention from the Central bank.”
“But that inflow has died down, and coupled with import of fertilizers, import of fuel, there is pressure of the Zambian Kwacha and that can be attributable to the depreciation of the Kwacha,” Dr. Habazooka stated.
Another Economist, Mwiya Ikabongo stressed the need for the country to come up with measures that will ensure that citizens are not affected by changes in the Kwacha’s performance.
Mr. Ikabongo said having a more stable currency will enable the economy to grow in a more sustainable manner.
“If we can have a sustained appreciation in the value of the Kwacha its better, as long as it is gradual and stable. So we hope that this stability is maintained over a long extended period of time unlike where it keeps changing. The country should come up with measures that will ensure that we are not affected by the changes in the Kwacha performance.”
“Sometimes we need to have a more stable currency which we desire because it means that we are putting in measures that help us to grow the economy in a more sustainable manner,” Mr. Ikabongo said.
Depreciation in a currency directly affects the interest rate and inflation rate. Zambia is an import-dependent country, therefore when the exchange rate goes up, inflation will also increase by that proportion.
The fall in currency also increases business costs because when the exchange rate rises, prices for most goods in the country will escalate.