Kwacha records weekly gain as improved liquidity supports market

The Zambian Kwacha strengthened against the United States (US) dollar on Friday, buoyed by improved market liquidity and increased foreign currency inflows. According to market data provided by the Access Bank group, the local unit appreciated by 0.65 percent to close just below the K19.00 mark per dollar, marking its first weekly gain in four weeks. The rebound follows a period of sustained pressure on the currency, with last week’s performance signalling a potential shift in market sentiment.

Analysts attribute the Kwacha’s gains largely to improved liquidity conditions in the domestic market. “This was supported by anticipated foreign currency inflows ahead of a government bond auction from, alongside increased activity linked to month-end local currency payment cycles and statutory obligations,” according to the commentary. Market commentary also indicated that central bank support played a role in stabilizing the currency.During Friday’s trading session, the Kwacha traded within a narrow range, opening at K18.850/18.900 and maintaining those levels throughout the day as supply and demand remained evenly matched.

Meanwhile, developments on the global stage continue to influence currency movements. The US dollar remained firm at the start of the week, on course for its strongest monthly gain since July. This performance has been underpinned by heightened geopolitical tensions in the Middle East, particularly the ongoing conflict involving Iran, which has driven investors toward safe-haven assets. 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.