Some Financial analysts have projected that the Zambian Kwacha will hit 12.8 to 12.9 against the US dollar in the coming week.
The Business Telegraph Zambia has disclosed that it expects the Kwacha to rally further to 12.9 percent early next week especially with the intervention of the central bank in the markets.
The Telegraph says this following the improvement in the performance of the currency which reached about 14.2 against a dollar which has been attributed to increased dollar demand and negative sentiments.
The increased dollar demand was necessitated by imports of oil and petroleum.
According to the telegraph, the intervention of the bank of Zambia is what has caused the market to calm.
Meanwhile Financial Expert Mambo Hamaundu has noted that the fluctuations that the local currency has seen are as a result of negative sentiments.
Mr. Hamaundu explains that the market responds negatively to negative sentiment and positively to positive sentiment.
He says the central bank has played its role in winning back people’s confidence and driving the currency towards what was almost the normal rate.