3 January 2013

Zambia: Kwacha Trades At K5 Per U.S.$ 1

THE new Kwacha was yesterday trading against the United States dollar at K5.1611 selling and K5.1811 buying according to Bank of Zambia (BoZ) interbank foreign exchange rates for the 09:30 hours' session.

The Kwacha was trading against the United State dollar in the range of ZMK 5143.56/ 5246.44 and ZMW 5.1436/5.2464 at commercial banks.

At Access Bank Zambia Limited the exchange rate were displayed in old currency ZMK5095.00/5221.70.

A check at Standard Chartered Bank Zambia North-end branch found that the exchange chart was only showing the rebased currency.

The Kwacha was trading against the greenback at KR 5.1330/KR 5.235 for selling and buying respectively.

At Stanbic Bank the Kwacha was trading at KR 5.150 and KR 5.250 while at Indo Bank the rates were reflected in old currency.

The United Bank of Africa (UBA) had by press time not displayed the exchange rates while some bureaux change like Coin are displaying dual exchange rates for various commonly used foreign currencies.

Most commercial banks have failed to adhere to BoZ requirement to display dual prices for exchange rates but only managed to exhibit their rates in rebased currency.

The banks which were supposed to display their exchange rates in both the new and the old currency as at yesterday failed to comply with the requirement.

Zanaco on the other hand was the only bank that had displayed the dual exchange rates in ZMK and ZMW as at yesterday.

And financial analyst Maambo Haamaundu has said that the consistency in policy pronouncements by key Government officials will help to support the value of the Kwacha.

Giving an outlook for 2013, Mr Haamaundu said it was expected that the local unit this year would be supported by consistency in policy pronouncements despite it being a challenging year.

In response to a press query, Mr Haamaundu said that policy pronouncements should support the Kwacha's appreciation.

"I also expect that in 2013 the Kwacha will be supported by consistency in policy pronouncements by key government officials," Mr Haamaundu said.

He said the local unit stability also needs to be supported by production otherwise the kwacha would continue being under pressure owing to demand of the United State dollar outstripping supply.

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