Kwacha fails to recover before February ends

The Zambia Kwacha has closed the month of February with a further depreciation.

Yesterday, the local currency depreciated further owing to increased demand for the United States dollars from importers wanting to cover their foreign obligations so as to minimise currency losses.

The local unit opened trading at K5.780 to K5.810 and closed at K5.795 to K5.825 yesterday.

This is according to Cavmont capital bank market report for Thursday, February 27, which was released to ZANIS in Lusaka today.

The bank said in the absence of improved supply, the Kwacha was likely to remain under pressure in the short to medium term.

And the bank’s aggregate current account balance increased by K86.99 million to K691.99 million while the cost of interbank borrowing and lending declined by 0.17 percent to 10.00 percent.

The financial institution further disclosed that funds traded on interbank were K170 million.