BoZ OFFLOADS US$50.3M
…to revive Kwacha, relieve pressure on dollar demand
IN its effort to resuscitate the Kwacha, the Bank of Zambia (BoZ) has offloaded US$50.3 million into the market.
The development, which took place on Tuesday, helped to relieve some of the pressure on the strong United States (US) dollar demand.
The Zambian Kwacha was, therefore, in bullish trade against the US dollar in Tuesday’s trading session, according to Access Bank’s daily market update.
The report showed that the local currency opened at K27.1894/27.2394 and closed at K26.9575/27.0075 on the market average interbank bid and offer respectively.
“The central bank offloaded US$50.3 million into the market, which helped to relieve some of the pressure on the strong dollar demand and caused the local currency to
appreciate by 0.42 percent.
“The Kwacha is forecasted to extend its gains in the short run,” the report indicated.
And Absa Bank Zambia, also in its daily market report, indicated that the local currency posted gains in Tuesday’s trading session as the market was fairly active with the BoZ in the market to support the growing demand.
“As market opened 08:30am, the local unit was quoted at K27.150/27.200 before gaining to K27.050/27.100 by midday and ultimately reaching K26.900/K26.950 by the afternoon session where it traded until market closure.
“Given the current market dynamics, we anticipate that the Zambian Kwacha will trade range bound,” according to Absa Bank.
Meanwhile, copper prices edged higher in London on Tuesday, for the first time in five sessions, though a strong dollar capped gain.
Three-month copper on the London Metal Exchange (LME) reportedly rose 0.3 percent to US$8,382 per metric tonne in open-outcry trading.
Oil prices also maintained upward momentum on Tuesday as investors awaited the result of top U.S. diplomat Antony Blinken’s efforts in the Middle East to halt the Gaza war and quell tensions in a major oil-producing region.
Brent crude futures gained 55 cents to US$78.54 a barrel, while US West Texas Intermediate crude futures rose 48 cents to US$73.26.
Both contracts gained nearly one percent on Monday, rising for the first time in