KWACHA`S VOLATILITY CONTINUES
By BUSINESS REPORTER THE Kwacha has remained largely unchanged against the major convertible currencies as most corporates have kept off the market in anticipation that the local unit will make a comeback.
During the Monday and Tuesday trading sessions, the local currency moved further against the Dollar and other major currencies owing to a move by the corporate world and a wane in supply on the interbank.
According to Cavmont Bank Zambia daily market report, the local unit began Tuesday's trading session at K9.950 / K10.000 compared Monday's levels when it closed K9.900 / K9.950.
Monday's trading session saw the Kwacha begin to move in the opposite direction following a reduction in supply from exporters and sellers.
The Kwacha began the day trading at K9.875 / K9.925, a level it traded at for most of the day compared to Friday when it was seen trading at K9.8500 / K9.900.
Cavmont Bank indicated that the Kwacha's performance contrasted other emerging market currencies like the South African Rand which touched an intra-day high of $1/ ZAR12.2300.
The financial market therefore anticipates that the local unit was likely to continue trading at current levels, with some resistance being expected above the $1/K10.000 mark.
On the money market, Commercial banks' aggregate current account increased by K5.83 to K632.40 million while the overnight borrowing and lending rate remained unchanged at 10.07 percent.