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The Zambian Kwacha is anticipated to drop further in value in the near term after it traded on the backfoot of the United States (US) dollar in Friday’s trading session.
On the market average interbank bid and offer, the USD/ZMW opened at K26.9400/26.9900 and closed at K27.0347/27.0847, respectively.
“As the market trend of low foreign currency supply and strong foreign currency demand continued, market participants in need of hard currency expressed concern over the performance of the local unit,” according to a daily market report released by Access Bank Zambia.
Absa bank in its report indicated that short term outlook suggested a potential bearish trend for the Kwacha, as supply remained thin to meet demand.
The report showed that the Zambian currency in Friday’s trading session traded under pressure on a close to close basis as the supply and demand imbalance continues to characterize the market.
“At market open, the local unit at was quoted at K26.95/27.00, where it traded for the morning session before losing five ngwee by mid-day to trade at 27.00/27.06, on the bid and offer respectively, where it maintained until close of market,” he said.
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