Zambia’s currency market countinues to experience thin Dollar supply!
By: Kelvin Chisanga
The Zambian Kwacha has continued to seeing some tough times on the local financial market owing to the trade thin with the Dollar scarcity strongly compounding factor.
The high appetite for local demand of US Dollar has taken a serious twist on Kwacha by depreciating it on a daily basis with a marginal level.WIN INSTANT CASH AND FOLLOW THE STEPS WITH A SINGLE CLICK
Of late, the market is thin on dollar supplies and this has continued to seeing a strong uptake in Dollar demands, a situation that has also led to an escalated trade imbalances in export and import sectors.
The Central Bank on one hand as the case always be, is firmly of the belief they have a fundamental grip, watching closely on the trending patterns in the domestic currency to ensuring that the market discpline is constantly kept right in shape especially in the light of small daily overheating factor, as this kind of ongoing depreciation will greatly impacted on the business houses.
However, it is expected that dollar tax conversations within the third quarter of 2023 which will be translated in Kwacha terms by most players portlays a strong influencing energy to support supply coupled with good prospects seen in copper prices.
Even though, we have envisaged to seeing some good effects from Dollar conversations this monthend, it does not look with much support base to help buffer strong influencing stance required, and to aid counterbalance bad elements of the current economic sentiment of scarcity taken from hurdles observed by hard currency supply deficits, it will definitely be required to do an overarching focus on export policy with the view to expand the scope.
Furthermore, the hard currency pressure remains quite high in the midst of current economic scenario that is seemingly faced with relatively low compounded with low agriculture production, as this is also seen as significantly showing a strong Dollar environment which has been fuelled with a green back fetch, and this is clearly leading a different pack of performance development patterns.
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