Kwacha Shows Resilience Against US Dollar Amid Uncertainties
The Zambian Kwacha has demonstrated resilience against the US Dollar, maintaining a positive trajectory with marginal appreciation throughout the past week, despite prevailing uncertainties in the economic landscape.
Economic expert Mr. Kelvin Chisanga notes that the local currency experienced nominal appreciations in response to consistent healthy inflows of US Dollars into the local market, facilitated by open market operations conducted by the Bank of Zambia.
Mr. Chisanga highlighted the positive movements of the Kwacha, particularly attributed to interventions by the central bank.
He emphasized that although the currency pair might not receive robust support, the performance of the Kwacha stands out when compared to regional peers such as the South African Rand, which has faced challenges against a basket of currencies.
Analysts anticipate the Kwacha to maintain its current trajectory, leveraging the momentum of moderately bullish trading patterns observed in the local market. Mr. Chisanga emphasized that market sentiments remain predominantly positive, indicating a favorable outlook for the Zambian currency.
Despite uncertainties looming in the economic sphere, the Kwacha’s resilience against the US Dollar reflects underlying strengths and positive market sentiment. With continued support from the central bank and favorable trading conditions, the Kwacha appears poised to sustain its positive performance in the coming days.
The steady appreciation of the Kwacha underscores the confidence of investors and traders in the Zambian economy, signaling stability and potential growth opportunities in the midst of global economic uncertainties.
Mr. Chisanga’s insights shed light on the factors driving the Kwacha’s performance and provide valuable perspective on the currency’s outlook amidst evolving market dynamics.
