KWACHA OUTLOOK BRIGHT

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By BUSINESS REPORTER

THE local markets closed last week high against the greenback at K11.80/11.85, stronger than Thursday’s close of K11.85/11.90.

According to Barclays Bank Zambia daily market update, dollar sellers dominated the trading day as they sourced for Kwacha to meet the Pay As You Earn tax obligations.

However, importers stayed on the fence in the hope of a further appreciation of the Kwacha.

The bank indicated that the outlook favours the Kwacha to be on the front foot in the near term.

And the bank said market activity decreased on the last trading day of the week with the interbank traded volumes closing at K355 million from the K498 million level posted in Thursday’s session.

However, Market liquidity posted a 30 percent rise to close at K766 million which supported the average interbank overnight rate resulting in a 1 base points drop to see it close at 9.91 percent,”said Barclays.

Meanwhile, Government bonds have continued to trade stronger as further demand from offshores were recorded.

According to Barclays, bids for 26s and 27s were at 23 percent but offers out there could not fill the demand.

We expect this to continue in today’s session,” the bank said.

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