• The Kwacha appreciated last week for the first time in over one year.
• The appreciation is largely attributed to the reduced demand for foreign currencies.
• The same conditions will continue into this week.

An Economist has observed that the Kwacha gained strength last week for the first time in over a year.
Speaking in an interview with Money FM News, Dr. Patrick Chileshe said the appreciation of the local currency is mainly due to reduced demand for foreign currencies as well as increased supply.
Dr. Chileshe further attributed the appreciation of the currency to improved supply of the Kwacha on the market compared to previous seasons.
“The Kwacha did appreciate last week for the first time in over one year, basically the appreciation is largely attributed to the reduced demand for foreign currencies as well as increased supply. The other thing is the level of supply on the market has improved compared to previous seasons and that has helped to reduce the levels of the backlog that financial systems have been having over time,” Dr. Chileshe noted.
And Dr. Chileshe stated that the Kwacha is this week expected to continue gaining strength against major convertible currencies as more corporate clients make conversions to pay annual taxes.
“As for the outlook, what we expect is that the same conditions similar to last week will continue into this week as more corporate clients make conversions to pay taxes which is the closure of annual taxes for income and withholding taxes so we are likely to see more conversions this week to meet those tax obligations. We could see the Kwacha continue appreciating for the rest of this week,” he added.
The local currency opened the market today Tuesday 20th July 2021, trading at K22.28 Ngwee and K22. 71 Ngwee on the bid and offer respectively.