Wednesday, January 14, 2009
Written by Florence Bupe
Wednesday, January 14, 2009 10:11:21 AM
THE kwacha liquidity yesterday fell slightly as a result of corporate customers making their quarterly tax remissions.
According to the Standard Chartered Bank Daily Newsletter, the local currency liquidity averaged K262.2 billion, down from K273.7 billion from the previous trading session.
Overnight lending rates also declined by 0.3 percentage points, standing at 9.3 per cent from 9.6 per cent.
The local currency closed at K4,960 to K4, 980, after an earlier record of K4, 910 on the back of heavy dollar inflows from the mines and Central Bank interventions.
However, the kwacha gains were not sustainable as the market sharply retraced higher.
Demand for the greenback has continued to be high, with trading ranges projected between K4,900 to K5,000.