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Kwacha Expected To Have Broad Dollar Strength
THE Kwacha was yesterday expected to have broad dollar strength due to increased dollar inflow from exporters amid scanty demand.
According to Standard Chartered Bank daily brief, the kwacha on Friday closed 50 points lower reaching K4,820 and K4,840.
The bank says the Kwacha is likely to remain resilient against the dollar.
“The interbank closed 50 points lower at K4,820 and K4,840. The trading session was characterised by increased dollar inflows from exporters amid very scanty demand. The market has now consolidated between K4,800 and K4,950 bands.
“With the euro against the dollar pair trading lower below the 1.2100 level on the back of negative Spanish data, we expect broad dollar strength today,” reads the statement.
Standard Chartered Bank’s focus range for Monday was K4,800 and K4,950.
And First National Bank (FNB)’s daily newsletter, says the local unit was expected to trade between K4,870 and K4,890 against the dollar from K4,850 recorded last week.
“Globally, the general sentiment is risk-off as Asian markets and the euro dropped. Volatility continued yesterday in the foreign exchange market, with the United States dollar against the local unit testing a low of K4,850 and K4,870 and a high of K4,910 and K4,930 yesterday.
“The pair eventually settled at K4,870 and K4,890, a level it has favoured recently,” reads the statement.
FNB said the Kwacha was expected to open with a high possibility of maintaining K4,850 and K4,870 as support and K4,910 and K4,930 as resistance.
Posted by
Chilemba wapa bwinga
July 24, 2012 at 2:11 pm
It is my prayer that it continues to appreciate and settle around K 4500 like in the Mwanawasa days.
Mr Chikwanda must be happy.Congratulations! Am happy too.
baby G
July 24, 2012 at 6:19 pm
Congrats to Alexadra Chikwanda and team
Nshendi
July 24, 2012 at 9:10 pm
Am still broke,these figures have no use/meaning to the Ordinary man
Prezzzzzzzzzzzzzzzo!!!!!!!!!!!
July 25, 2012 at 8:28 am
We’re happy nomba amabroke fye.If possible let it drop further so as to Zambian economy can boom.Good effort Ba Chikwanda and the team big up!!!!!
DR K
July 25, 2012 at 11:01 am
PF at work!
Wizard
July 25, 2012 at 12:30 pm
Do you guys really understand what this means to an economy.? Or you are just saying with a political obligation you owe to Mr. Sata with the rest of the Bembas in government,and the PF. The increase in the exchange rate does not mean the economy is doing fine. It is the dynamics in the economy which usually makes this upsurge of a currency. For example in this case the demand of the Kwacha has risen and that doesnt mean the value has increased.The Kwacha is like a commodity and its scarcity means more pipo are looking for it and the forced government policy of using the Kwacha as a medium of qoutation during local business transactions makes it actually difficult for a local to survive and live in such an economy.If there wasnt any government interference the Kwacha could have gone even upper to even k3300 per dollar. But the gov didnt let the markets play,which is not the good governance and this has economical problem in the near future. Because our economy solely depends on copper exports if the Windfall tax was implemented the govenment could have earned billions of kwachas. But was a loss for the country hence the suffering and borrowing continues
Luapula Fish
July 25, 2012 at 1:24 pm
@wizard . An increase in exchange rate does not mean an economy is doing fine ? Your statement is wrong , because when an economy of performing well you expect macro economic variables to gauge up .exchange rate is a flow macro economic indicator and thus it is recorded at any point in time unlike the stock variables that are recorded at a point in time (i.e gdp). wat u wud have said is that there are other reasons that can lead to an appreciation of a curency even wen an economy is under performing. generaly an appreciation in currency ( given a liberalised exchange rates) low rates of inflation, low interest rates, trade surplus , improved stocks ,low rates of unemployment are good indicators of a good performing economy
Nazi
July 25, 2012 at 3:51 pm
Sorry , The dollar will trade at 1 to 1 with Kwacha , u still be broke …. Credit were its due …..Good work
witchcraft
July 25, 2012 at 3:55 pm
ok we will see
chazya
July 25, 2012 at 6:30 pm
where are those doom economists(CBU & the like) from the southern to comment on this one,the have been so critical about the kwachalization?
RELOADED
July 26, 2012 at 11:49 am
Bless up alexander chikwanda aka mr genius..i know the kwacha is still appreciting and it will be soon trading at 3500..i have hope in pf,it is God chosen.
Critical Situational Analyst
July 29, 2012 at 3:52 pm
People try to understanding between the cost of living and the standard of living, even if the kwacha gains strength what does that meaning to you as the individual. Look at China it has a lot more money in there reserve bank [like Bank of Zambia here] for the country, but still maintaining devalued currency to encourage exports.
In Zambia for instance you are paying tuition fees of K 6, 750,000=00 per semester after the kwacha has gain value in respect to foreign currency ,then you start paying K 14,567,550=00 per semester that to our local institution
Our economy is still too weak to benefit from the kwacha’s gains to ordinary citizens to an extent of showering praises. It will sense if one was paying K6, 750,000=00 per semester then afterwards economically speaking you starting paying K3, 127,664=00 per semester. There are times when the rains shown that it rain when actually it just wind blowing.That is premature praises.
mali
August 1, 2012 at 2:01 pm
AKUPEPENI FYE IMWE, STOP TALKING ALL DAY LONG, BY THE WAY DO YOU WORK, OR MIGHT BE SELF EMPLOYED? THEN BUSINESS IKAWA SURE.
spinx
August 21, 2012 at 1:14 pm
natunaka nefi,is it possible to bring mwanawasa so that we can buy our dollar between 2900 and 3500 kwacha,NO but mangande is still there,can alex go and consult what magande did? learn to consult even if you are very educated with vast experience.