Kwacha slips but remains on track for weekly gains as global markets react to Gulf crisis

The Zambian Kwacha weakened slightly against the United States dollar on Thursday, ending a three-day winning streak, but remained on course to post a weekly gain amid improved market liquidity and anticipated foreign currency inflows. According to market data from Bloomberg, the local currency slipped by 0.12 percent to close just below the K19.100 per dollar mark. Despite the marginal decline, analysts noted that the kwacha’s overall performance this week remained positive, supported by favourable liquidity conditions in the domestic market.

Market commentary by the Access Bank group also indicated that much of the kwacha’s strength during the week had been driven by improved liquidity, largely attributed to anticipated foreign currency inflows ahead of the government bond auction. “Additional support has come from month-end local currency payment cycles and statutory obligations, which typically boost demand for the local currency,” it stated. Meanwhile, developments in global foreign exchange markets also influenced sentiment, as the US dollar edged lower following a decline in oil prices.

The drop came after United States President Donald Trump extended the deadline for potential strikes on Iran’s energy infrastructure to April 6, providing more time for diplomatic efforts aimed at de-escalating tensions. Despite these uncertainties, the kwacha’s near-term outlook remains moderately supported, provided expected foreign currency inflows materialise and global market volatility remains contained. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.