By Zamchro Financial Analyst
Foreign Exchange News
The ZM kwacha slipped further versus the US dollar in Friday’s trading sessions as dry conditions persisted on the currency market. Exporters have kept a low profile on the market, and the has starved the market of liquidity.
The pair was buying and selling at 4,930 and 4,950 respectively on interbank at the start of trading and fell to 4,915/35 in the mid-morning session largely on account of Bank of Zambia’s show of willing to provide liquidity to the market.
However, this did not materialize and as a result dollar/kwacha rose to intraday highs of 4,970 and 4,990 on position squaring. The pair is expected to continue pushing towards the 5,000 levels if the current conditions persist at the start of the new week.
Money Market News
The excess kwacha balance on the local market fell by K42.2 billion on Thursday at the close of the money market activities. This could be attributed to effect of Bank of Zambia’s open market operations.
At the same time the corporation tax settlements have continued to wipe out excess liquidity from the market. Volume of funds traded on interbank amounted to K71.5 billion at an average rate of 9.6 percent.
The OMO window was kept opened with K100 billion worth of Term Deposits and REPOS on the offer in the afternoon session on Friday.
Foreign Market News
At 16:00 hrs local time on 8 January 2009, copper spot price on Nynex, New York was quoted at $1.4945 per pound and for February delivery at $1.4505 per pound.
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