By JUDITH NAMUTOWE –
THE Kwacha on Friday showed some bullishness against the US dollar as it extended gains versus the foreign currency in volatile trading.
The local currency was boosted by Central Bank dollar selling after a statement that adherence to a flexible exchange rate policy did not imply complete absence of intervention to support the Kwacha. According to Zanaco daily newsletter, further support for the local currency was also seen from exporter selling as well as tight Kwacha liquidity.
The Kwacha hit a high of K5.86/5.87 but strong demand limited gains with the local currency closing at K5.95/5.96 versus the dollar. It was up three ngwee on the day, while in the near term, the currency markets were expected to remain volatile with the currency likely to trade within a K5.92-K6.020 range. The money market experienced a decline in liquidity levels. The banks aggregate current account balance decreased to K457.1 million from the previous levels of K580.94 m.