Kwacha firms after President’s intervention

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ZAMBIA’S Kwacha firmed 1.6 percent against dollar to 9.9100 after the presidency said it would intervene in markets to stem the recent selloff that saw the currency tumble to record lows.
“The statements by State House will obviously go some way in helping the kwacha but if there is no action it will start weakening again,” one commercial bank trader said.

 
And First National Bank (FNB) said in its daily newsletter issued yesterday that the Kwacha is expected to gain value against other currencies following the Bank of Zambia’s intervention to purchase K400 million on Friday to wipe out excess liquidity and stabilise the local unit.
“There is a chance we could see some pullback as the market knows there are intervention efforts by the central bank. Market players will eagerly listen to statements and, more importantly, watch out for any action,” the FNB says.

 

Reuters

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