THOSE HOARDING DOLLARS SHOULD SELL NOW, AS KWACHA IS EXPECTED TO GAIN EVEN FURTHER
The Kwacha has been appreciating for four (4) straight days and now trading around K22.21 from K22.86 just last week.
On Tuesday, the kwacha made a huge gain to trade at around K22.54 from K22.86, then K22.49 on Wednesday and K22.21 on Thursday.
“The appreciation of the Zambian kwacha is due to improved dollar supply and the positive outlook in terms of forex reserves. Mining activities have increased resulting in increased forex inflows,” Economics Association of Zambia president Dr Lubinda Haabazoka has explained. “The country is also exporting agricultural produce after another good harvest. Also expected is an injection of $1.4bn through SDRS into our reserves as countries share $650bn free SDR allocations amid the IMF’s plans of enhancing global liquidity.”
The $1.4bn forex injection through SDRS will push our reserves to over $3.1bn by end of August, he said.
”Those hoarding the dollar should start selling now. Commodity prices are expected to start reducing with increase in kwacha value,” Dr Haabazoka said.