“The local unit started October on a bullish note. The kwacha’s appreciation is owing to dollar conversations as the tax deadline draws closer,” FNB Zambia stated in today’s market update. “At its peak, the kwacha reached K12.97/K13.02 – these levels seemed to have ignited some jitters among importers, leading to a slight uptick in dollar demand. Markets eventually closed at 13.00/13.05.”
The market experts see a much stronger kwacha in the short term.
“Our view is that this bullish trend will continue in today’s trading – a break of 13.00 is possible. The rand, like the dollar, continues to depreciate against the kwacha. We could see market trading below 0.858 today,” stated FNB.