BUUMBA CHIMBULU writes
THE Kwacha traded on the front foot for the fourth straight session on Thursday helped by healthy dollar conversions from corporates coupled with tight local currency liquidity.
Barclays Bank Zambia daily market update reported that the performance of the Kwacha was assisted by healthy dollar conversions from corporate coupled with tight local currency liquidity.
“The Kwacha traded at its opening levels of K12.500/12.550 for most of the day but closed at its high of K12.460/12.510 on the bid and offer respectively. The local unit is likely to trade steady in the short term,” said the bank.
On Wednesday, the local unit posted further gains against the greenback for a third consecutive day mainly due to corporates winding down on their dollar conversions to meet their Tax obligations as local currency liquidity still remained tight.
Opening the day at K12.550/12.600 per dollar, the Kwacha traded in a tight band in both the morning and the afternoon sessions to close five ngwee stronger at 12.500/12.550 on the bid and offer respectively.
On near-term, the Kwacha was likely to trade firm.