Kwacha un­der pres­sure this week…

LUSAKA, Sept 03 – Zam­bian kwacha and Ghana­ian cedi ex­pected un­der pres­sure this week from ex­cess dol­lar demand.

Zambian Business Times - - FRONT PAGE -

Zam­bia

Zam­bia’s cur­rency the kwacha is ex­pected to trend bear­ishly on the back of un­cer­tainty around the way forward with an IMF pro­gram ver­sus the re­cent bi­lat­eral meet­ing out­comes with China.

The kwacha has been trading above 10 at highs of 10.15 and is ex­pected to os­cil­late within 10.15-10.35. Last week’s trea­sury bill auc­tion pushed yields higher in the 20s for one-year money sig­nalling a rate bear­ish en­vi­ron­ment that is likely to af­fect cur­rency neg­a­tively. Zam­bia’s Au­gust PMI read­ings will be re­leased this week with mar­ket ex­pec­ta­tions of weaker busi­ness pulse fol­low­ing a tur­bu­lent au­gust. Last PMI read­ings for July was 50.3 (3-month low).

Ghana

Ghana’s cur­rency the Cedi is fore­cast to be volatile on dol­lar demand from lo­cal busi­nesses and com­merce op­er­a­tors, an­a­lysts said.

The cedi lost ground marginally to the green­back this week as liq­uid­ity in­flows thinned out, de­spite cen­tral bank dol­lar sales. It was trading at 4.89 to the dol­lar last week, com­pared to 4.85 the other week.

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