• Over the last few days there has been an increase in demand for the US dollar.
• The demand has grown and it is putting pressure on the Kwacha.
• Imports of petroleum products by Oil Marketing Companies are causing the demand for dollars.

After weeks of recording positive gains, the Zambian Kwacha has started losing strength against the United States dollar and other global convertible currencies.
In the first quarter of 2022, the Kwacha depreciated by 3.7 percent against the United States dollar to an average of K17.76 ngwee.
According to Bank of Zambia, the weakening of the currency in the first quarter of the year was due to excess demand for foreign exchange, mainly for importation of petroleum products.
Bank Governor Dr. Denny Kalyalya disclosed last week that the Central Bank continued to support the market with an injection of US$372 million in order to stabilize the exchange rate.
And an Economist told Money FM News in an interview that over the last few days, there has been an increase in demand for the US dollar, which has been low in the last one month.
Dr. Patrick Chileshe attributed the demand for the greenback which is putting pressure on the Kwacha to importation of petroleum products by Oil Marketing Companies (OMCs).
“What we have seen over the last few days is an increase in demand for the US dollar which has been low in the last one month or so. So we have seen the demand grow and that is putting pressure on the Kwacha. Mostly energy imports, the imports of petroleum products by Oil Marketing Companies are causing the demand for dollars,” Dr. Chileshe noted.
He however said the Kwacha is expected to stabilize this week, with a minimal bias of weakening but will be within K17 to K17.05 Ngwee.
Yesterday, the local unit opened the market trading at Sixteen Kwacha Ninety Two Ngwee and Seventeen Kwacha Twenty Six Ngwee against the dollar and closed the day at K17. 03 Ngwee and K17.36, respectively.
Today, 24th May, 2022, the US Dollar is buying at K17.03 and selling at k17.36 Ngwee.