BoZ MAINTAINS PRESENCE IN MONEY MARKET TO STABILISE EXCHANGE RATE
THE Bank of Zambia (BoZ) has continued with its intervention measures aimed at stabilising the exchange rate in the short term, currently trading at K22.7128/22.7628 against the United States dollars.
The central bank in Wednesday’s trading session offloaded US$15 million onto the market which partially met growing demand for hard currency from corporates and importers.
This is contained in a daily market update prepared by Access Bank Zambia.
“The Zambian Kwacha ticked lower against the US dollar in Wednesday’s trading session. The US$/ZMW opened at K22.7128/22.7628 and closed at K22.7453/22.7953 on the market average interbank bid and offer, respectively,” according to Access Bank.
And Absa Bank Zambia reported in its update that the Kwacha was in the near term likely to trade within range as supply and demand determine its overall position.
“Wednesday’s trading session saw the Zambian currency depreciate against the US dollar owing to a steady rise in greenback demand from large corporates.
“Market opened with the local unit at K22.600/22.650 where it traded for majority of the session before moving to K22.650/22.700 in the afternoon session, where it remained up until closure,” according to Absa Bank.
Elsewhere, the dollar flattened on Wednesday as traders awaited minutes of the Federal Reserve’s latest policy meeting for further clues on the central bank’s rate outlook, while sterling shrugged off Britain’s highest ever monthly budget surplus in January.
The United States dollar index, measuring the currency against six peers, flattened at 104.05, after moving 0.25 percent lower on Tuesday on the back of a dip in global bond yields.
Meanwhile, three-month aluminium on the London Metal Exchange touched US$2, 269 a metric ton, hitting its highest since February 1, 2024.
The red metal traded up 2.7 percent at US$2, 253 per ton in the official ring.
Among other metals, copper traded at US$8, 550, up 0.6 percent.