Daily Nation Newspaper

Kwacha to remain range bound against the dollar

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By NATION REPORTER THE Kwacha is likely to remain range bound with a bias towards further gains should liquidity in the money markets remain tight, Cavmont Bank has predicted.

According to the bank, the Kwacha which has remained largely unchanged against the dollar is expected to remain range bound coupled with subdued demand from buyers.

"The Kwacha was still largely unchanged against the U.S dollar on Thursday, with market activity still being largely mute from most market participan­ts.

The pair began the day trading at K9.520 / K9.570.

By midday however, the cur- rency pair was seen being quoted at K9.500 / K9.550," said the bank in its daily market report.

Meanwhile, commercial banks' aggregate current account decreased by K220.32 million to K228.64 million while the overnight borrowing and lending rate increased by 0.70 percent to 9.00 percent. Total funds therefore traded on Interbank were K497.00 million.

Meanwhile, the Central Bank was conducting Open Market Operations and was looking to reduce market liquidity by K600 million.

Accepted rates were 7.50 percent on 1 day.

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