- Goal Diggers
- Guest Diggers
Kwacha hits 12 per dollarBy Stuart Lisulo on 4 Dec 2018
The kwacha has depreciated against major currency convertibles to breach the K12 per dollar psychological barrier for the second time this year.
But the local currency looks set to regain its strength ahead of the Christmas break as early indications suggest it may appreciate.
According to financial market players, the kwacha breached the K12 psychological barrier per dollar to trade above K12.00 on account of continued heightened demand for dollars on the local market with correspondingly limited supply of the greenback.
The local unit was seen trading at a market average of K11.77 and K12.00 by lunchtime, Monday, for bid and offer respectively, according to the Bank of Zambia, down from an average of K11.60 per dollar in early November.
The last time the kwacha depreciated to hit the K12 per dollar barrier was in September this year, where it traded at an average K11.81 and K12.04 by the end the third quarter.
“On Thursday (November 29), the kwacha breached the $1/K12.00 barrier following a wane in supply from corporates as well as on the interbank. The local unit began the day trading at K11.90/K11.95, a level it maintained until mid-morning, when it was later seen trading at K12.02/K12.07. The mismatch in demand and supply levels continue being the major drivers on the currency pair in the short to medium term,” Cavmont stated in a market report.
And check around several bureaus in Lusaka found the kwacha had touched the K12 per dollar mark.
The local unit traded at K11.85 and K12.08 per dollar for bid and offer respectively at Golden Coin Bureau, Cairo Road branch, while Unifinance quoted at K11.80 and K12.03 per dollar at by lunchtime yesterday.
But the kwacha looks set to regain its strength ahead of the Christmas break as early indications suggest it may rebound and appreciate.
FNB Zambia explains that corporate entities will be looking to convert dollars into local currency to meet their usual obligations.
“Today (Monday), marks the first trading day of December and it might be a quiet day, with light trades. However, we could see a hike of conversions by the end of this week as corporates strive to meet supplier obligations as they prepare to go on their December break,” stated FNB in its daily treasury newsletter.
About Stuart Lisulo
Stuart Lisulo is an experienced journalist with a focus on business news.
Email: stuart [at] diggers [dot] newsRelated Items
- PF official gets terrorism charges over gassing (14,769 views)
- Where is the father while the mother weeps “amwa peeling?” (13,327 views)
- ACC probes Health Minister for corruption (8,466 views)
- Gassing can't be stopped in one day - State House (7,573 views)
- Top Chingola cops implicated in gassing incidences (6,795 views)
- Lungu wants Kambwili back in PF, claims GBM
- Wina is lying, Zambia suffering because of theft in govt, not because of by-elections - Sangwa
- Enjoy the sweet, but remember Guy Scott who sweated for it
- Where is the father while the mother weeps “amwa peeling?”
- Gassing can't be stopped in one day - State House
Subscribe for news email alerts
ArchivesMar0 PostsApr0 PostsMay0 PostsJun0 PostsJul0 PostsAug0 PostsSep0 PostsOct0 PostsNov0 PostsDec0 Posts
- «February 2020»
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- PF official gets terrorism charges over gassing
- It’s every man for himself under Lungu – Milupi
- ACC probes Health Minister for corruption
- Chilubi outcome shows 2021 polls won’t be free and fair – AVAP
- Criminals are changing tactics, soldiers can’t root them out instantly – Chama
- Bill 10 has polarized Zambia – Kabimba
- Lungu renews Bible Society membership, as netizens drag him back to gassing
- Soko not entitled to any of his claims, RTSA tells court
- Interest rates rise to 28%
- Lumezi MP backs Bill 10
- Southern Province in internet blackout
- Cooperatives must be used as viable businesses, Mungalaba tells entrepreneurs
The News Diggers
Deputy News Editor
Send this to a friend