The Kwacha on 18th June 2019 rallied to K12.95 for a unit of dollar propelled by support from taxes and payroll conversions.
Most corporates are selling dollars to meet their taxation obligations in local currency with a significant portion also looking to fund month-end payrolls.
This is the strongest the copper currency has traded in almost 2 months after it slid to a 42 month low weighed by souring sentiment given falling reserves and rising public debt. The Bank of Zambia (BOZ) on 22 May tightened monetary policy 50 basis points (bps) to 10.25% for the first time since Dec 2015 signaling the genesis of a rate hike cycle given the fiscal posture of the sovereign. Zambia was in May downgraded by Moody’s rating agency to Caa2 with negative outlook.
The rally was however capped by dollar demand from the petroleum sector which was nonetheless outweighed by Kwacha appetite.
“Kwacha funding in the offshore market has been tight and this has supported the bulls observed to some extent,” an unnamed commercial bank trader said in the capital Lusaka. The optimistic outlook is expected to persist in the medium term, he said.
By close of business of 18 June, the Kwacha traded with a a bid offer range of 12.79 – 13.05.
Good new to me, but bad news to HH who likes to see Zambians suffer.
Poor kwacha.
Kwacha has gained by 33 Ngwe to the Pound Stirling. Great improvement Zambia!
What matters is the trend and not daily movements in the exchange rate.
Pamela Gondwe and the dollars. That’s the only reason I can think of.
Yes it is HH who can explain this in Bemba.
I didn’t understand a shhit, not even Ba Edgar comprehend what’s going on.
Kwacha gaining value is bad for my business ventures.
I will just sit on my British Pounds for a few more days till the Kwacha resumes its downward trajectory.
So long there is still no significant change in the fiscus this remains but a short term event as we have witnessed before the Kwacha continues it’s poor performance …the fact that it flactuates so much is the problem than the actual rate….poor reserves, poor net trade effect often deficit, uncertainty in the Mining industry sadly still our main dependent of USD ..eiiiish!!
Karibaman I love you as my fellow Zambian but HH isn’t our problem but he’s just trying to help our country progress and if you don’t want him then don’t vote for him but please don’t ever mention his name on matters that doesn’t concern him.
Karibaman all you think is hh
Some foool from State House will say at the airport that its his govt’s policies working!!
I hope you will also not blame his govt’s policies if the kwacha weakens again
DON’T INVOLVE HH IN THE POOR PF GOVERNANCE SYSTEM,DOES HH HAS THE CONTROL OVER THE EXCHANGE RATE.
Yes let him bring billions from Panama
Please don’t forget the hidden zeroes! That translates to K12,950 to a USD!
Back your kwacha with Gold and beef up productivity and national reserves.
Alas, this can’t happen now because people are busy “stealing for the future!”
When you round off to the nearest significant figure you are still at 13
In the week beginning 20th May the dollar was trading at K13.9859. When you round off, are you going to still get 13?
Trib.als, please keep off this topic! Gay Jay trib.al na Spaka trib.al mwaumfwa?!
This is good for all God Zambians. The ones that appreciate the good for the nation. If you are mad the Kwacha is gaining you might be a devil.
Dumbest thing I ever read.
Let’s just dedicate our country to the LORD GOD who lives forever and things will move people, than pointing at each other.
Kwacha gaining strength has nothing to do with our Zambian efforts…it’s the dollar that has lost a grip …if you want check forex markets…you will notice that usd pairs have all gone down…