Kwacha to gain against convertibles this week

A Financial Expert says the Kwacha is likely to stabilize and gain a bit of strength against major convertible currencies this week.
Speaking in an interview with Money FM News, Shabdin Mweemba said this is owing to the fact that market players have started having confidence in the new Central Bank Governor, Christopher Mvunga.
Mr Mweemba states that the local currency is expected to appreciate between the ranges of K20.03 and K20.04.
“Following the appointment of the new Bank of Zambia governor, there has been some speculation from the market, but now that he has been ratified by government and he has started working market players have begun to have confidence in the governor,” he said.
He added that the increase in the copper prices on the London Metal Exchange to about 7000 dollars a tonne will also translate into a strong Kwacha.
“Other than that we just heard yesterday that a tonne of copper on the international market has gone up to 7000, which will translate positively for the local currency,” he said.
Mr Mweemba further said the other fundamental that would lead to the strengthening of the currency is the positive indication by the International Monetary Fund (IMF) to appoint a representative for Zambia, which is a positive signal that they may provide the country with a bailout package.
The US Dollar is buying at K20.36 and selling at K20.74.

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