Kwacha depreciates by 31% in last six months

A financial expert says the Kwacha has not performed well in the last six months of the year compared to major convertibles especially the US Dollar.
Speaking in an interview with Money FM News, Mambo Hamaundu said the performance of the Kwacha from January to date the local currency has seen it depreciate by 31 percent, after it opened at K13.95 to K18.03 where it is currently sitting.
Mr Hamaundu noted that in the Month of January to February Month end the Kwacha lost strength against major convertibles by about 5 percent.
He said in the Month of February the depreciation of the Kwacha was minimal as it stood within the accepted range of 8 percent.
Mr Hamaundu added that in the month of March the Kwacha performed at its worst, as it lost strength by 22 percent, opening at K14.07 and closing K18.
He explained that in the Month of April the local currency performed well with depreciation of about 1.4 percent, which was good at lease the Kwacha was showing a bit of some resilience.
Mr Hamaundu said going into May the Kwacha appreciated from levels of about K18.75, closing around K17.07 posting an appreciation of 3.1 percent.
He further said that in June the direction of the depreciation continued with the currency opening at K17.07 and closing at K17.89, posting a depreciation of around a percentage.
“So when you look at all these figures there is an indication to say the general direction of the Kwacha is that of depreciation and this is mainly driven by demand centered on the huge amount of debt and the need to procure oil by the government,” Mr Hamaundu said.
“That is what is really pushing our rate of exchange upwards”.

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