By Kuchalo
The Zambian Kwacha has maintained its upward momentum, continuing to strengthen against major convertible currencies, including the United States Dollar.
By close of business yesterday at 15:30 hours, Bank of Zambia exchange rates showed the Dollar buying at K20.02 and selling at K20.07.
However, movements in the interbank and bureau markets indicated an even stronger performance by the local currency.
According to Absa Bank, the Dollar had already slipped below the K20 mark, buying at K19.89 and selling at K20.27. In several foreign exchange bureaus, the Kwacha was trading as strong as K19.80 to the Dollar.
Economist Bright Chizonde has attributed the continued appreciation of the Kwacha to an increased supply of foreign currency, particularly from the mining sector, coupled with improved foreign exchange reserves.
He noted that the ongoing International Monetary Fund (IMF) programme has played a significant role in boosting market confidence and strengthening Zambia’s external position.
Chizonde further observed that the Kwacha is likely to sustain its appreciation trend, citing expectations of continued support under the IMF programme and steady foreign inflows.
He said these factors have helped stabilise the currency and improve investor sentiment, contributing to the Kwacha’s recent gains.
The recent performance of the local currency reflects growing optimism in the economy, with analysts closely monitoring developments in the mining sector, reserve levels and macroeconomic reforms for further direction.
