• Kwacha slid further against the dollar on Monday due to the continued increase in dollar appetite.
• As at 08:30 hours on Monday commercial banks quoted the Kwacha to be trading at 21.575 and 21.625 per dollar.
• Buyers of dollars dominated the trading session as the local unit traded defensively.

Absa Bank Zambia says the Kwacha slid further against the dollar on Monday due to the continued increase in dollar appetite from corporate importers as well as various sectors of the economy.
According to the Bank’s Daily Market Update statement as at 08:30 hours commercial banks quoted the Kwacha to be trading at 21.575 and 21.625 per dollar, 3 ngwee lower than Friday’s close.
It said buyers of dollars dominated the trading session as the local unit traded defensively with little supply in sight.
The Bank added that it anticipates local unit to continue on the same trajectory as the week progresses.
“As the week progresses, we anticipate the local unit to continue on the same trajectory,” the statement read.
It further said liquidity levels were little changed in yesterday’s trading session increasing to K1,273.32 from K1,087.33 Million, with volumes of funds traded on the interbank adversely reducing to K519.00 Million from K545.00 Million.
The Bank noted that the weighted overnight interbank rate continues to be range bound at 8.41 percent.
“The liquidity levels were little changed in yesterday’s trading session increasing to K1, 273.32 from K1, 087.33 Million. With volumes of funds traded on the interbank adversely reducing to K519.00 Million from K545.00 Million,” the document read.
It further observed that the market was fairly quiet in yesterday’s trading session with yields remaining unchanged, but expects a pickup in activity as market players prepare to place their bids for the Government bond auction scheduled for Friday 19th February, 2021.