The local currency traded at K12.60 per dollar at the close of trading on Friday and only began to gain noticeably yesterday.
Market experts expect a much stronger kwacha in the short term provided dollar supply is sustained.
“The local unit continues to appreciate against the greenback and a wider basket of currencies in the wake of increased dollar supply. The kwacha improved by a 100bp spread from K12.375 to K12.275 median. Some supply is owing partly to the revamp of copper production that had slowed down in recent weeks supported with local obligations to be made before the long weekend,” FNB Zambia has stated.
“For as long as dollar supply is steadily controlling the existing dollar demand, the market will linger towards the kwacha’s favour. We could see trades below K12.20 supported today.”