The Zambian kwacha on Tuesday fell for the first time in 18 trading sessions against the United States dollar, halting a remarkable rally that had delivered double-digit gains. The currency dropped around 0.45 percent to close just above 19.600, trimming its overall advance during the streak to roughly 13 percent. The decline, according to a market commentary by Access Bank Group, was driven by a resurgence in dollar demand as corporate and industrial firms resumed operations following the December holidays.
Local market analysts say the uptick in dollar purchases, which began around January 12, could increase short-term volatility and potentially usher in a bearish trend for the Kwacha. The Kwacha’s prior surge had been fuelled by multiple factors, including central bank measures restricting foreign-currency usage, pre-January 10 corporate exchanges of dollars into kwacha to meet tax obligations, and a sharp rise in global copper prices. Zambia, Africa’s second-largest copper producer after the Democratic Republic of Congo, has seen its currency closely tied to the metal’s market performance, highlighting copper’s central role in supporting the kwacha’s recent strength. 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.
Read Full Article on Zambia Monitor
