FNB Zambia stated that although the BoZ didn’t, however, underline specifics on the measures it would take to address the volatility in the currency market, some resilience from the kwacha is expected.
“Late on Friday, the Bank of Zambia (BoZ) announced the following measures aimed at aiding economic activity; Opening credit lines to the tune of K10billion ($540million) in a Medium-Term Refinancing Facility (MTRF), Relaxation of Credit Provisioning Rules, Extension of Day1 impact of IFRS9, Fee Waivers and Higher E-Money Limits. In addition, BoZ also stated that it would review the interbank foreign exchange rules to address volatility in the currency market. BoZ didn’t however underline specifics on the measures it would take to address the volatility in the currency market,” FNB Zambia stated.
“As we start the new week, we await to see how the market will receive the measures set by BoZ. We could see some resilience from the kwacha, as market participants start to position themselves for a possible intervention from the Central Bank. Resistance is pegged at 19.250.”
“We saw volumes continue to dwindle as business activity slows down,” FNB stated.
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