TODAY the Kwacha traded bullish and it appreciated from the opening of 13.4000 to somewhere close the day below 13.0000. This is mainly as a result of the following:
1. Bank of Zambia was on the market from Monday selling USD to shore up the kwacha
2. corporates converting USD to meet ZMW month end obligations
3. The Bank of Zambia increase in MPC rate to 10.25% from 9.75%
4. Tbill auction was today and results show over subscription.
Next week event risks include:
1. May CPI figure on the 30th May
2. The President of Zambia has called for an emergency cabinet meeting to address some economic challenges especially the arears and debt.
Kwacha might continue appreciating in the next coming week. ZMW also appreciated against ZAR to close at less than 0.9000.