A financial expert says the Kwacha is this week expected to continue on a depreciating trend.
Speaking in an interview with Money FM News, Mambo Hamaundu said fundamentally, there is nothing that has changed to influence the demand pattern of the local currency.
Mr Hamaundu stated that the demand pattern is responsible for pressure on the rate of exchange, with a lot of demand coming from the government.
“The general direction is inclined towards depreciation because fundamentally nothing has changed to influence the demand pattern of the local currency,” he said.
He noted that for as long as the pattern is not changed, the Kwacha will continue to loss strength against major convertibles.
“For as long as this pattern is not changed, the kwacha will continue losing strength against major convertibles, if for instance, we are given significant relief in terms of debt servicing we could see the pressure easing a bit and we might see the Kwacha stabilizing, ” he said.
Mr Hamaundu explains that the local currency will only begin to stabilize once the country is given significant relief in terms of debt servicing.
The US Dollar is buying at K20.19 and selling at K20.58.