Kwacha Holds Firm as Market Liquidity Improves

Zambia’s currency traded with notable stability today, showing marginal strengthening across select interbank windows as improved liquidity and steady corporate flows kept volatility low.

According to mid-week trading data from commercial banks, the kwacha remained tightly ranged between K22.70 and K22.95 on the interbank market, while retail rates showed a wider spread of K22.66–K23.30, reflecting bank-specific pricing strategies and demand dynamics.

Steady Morning, Firmer Midday

At 09:30, the market average showed the kwacha buying at K22.8429 and selling at K22.8929 on the interbank market. Retail quotes were slightly higher, averaging K22.7930 (buy) and K23.1022 (sell).

Banks such as Absa and FNB opened slightly stronger than peers, with Absa quoting K22.70/K22.75, while FNB offered one of the lowest retail buy rates at K22.6830.

Midday Strengthening Driven by Corporate Inflows

By 12:30, the kwacha had appreciated marginally, with the interbank market average firming to K22.8839 (buy) and K22.9339 (sell). This was attributed to improved corporate FX inflows and moderate interbank trading activity.

Notable performers included:

• Absa: maintained strong pricing at K22.75/K22.80
• Ecobank: remained competitive at K22.85/K22.90
• ZICB: held steady at K22.90/K22.95

Retail market rates, however, widened slightly as demand from importers persisted, pushing the average retail sell rate to K23.1328.

Afternoon Session: Stability Reigns

By 15:30, the kwacha continued to hold firm, with the interbank average rising slightly to K22.9089 (buy) and K22.9589 (sell). The retail market remained elevated, averaging K22.8570 (buy) and K23.1482 (sell).

Banks offering the most favourable retail buy prices included:

• Zanaco at K22.7367
• Bank of China at K22.7100
• Stanbic at K22.6750 (one of the day’s strongest buy quotes)

Top Market Performers

Best-Performing Banks (Tightest Spreads / Most Competitive Rates):

• Absa Bank Zambia maintained some of the tightest and most stable interbank and retail spreads throughout the day.
• Ecobank Zambia remained consistently competitive, particularly in the interbank window.
• Bank of China Zambia offered the strongest retail buy rate in both morning and afternoon sessions.

Most Stable Pricing:

• ZICB, Indo-Zambia Bank, and Stanbic kept uniform pricing throughout all sessions, signalling solid liquidity positions.

Kwacha Market Outlook

The kwacha’s stability today reflects easing pressure from the dollar, rising FX supply from corporates, and improved market confidence. Analysts note that the currency could continue trading within the K22.80 to K23.15 band in the near term, barring major external shocks.

The Bank of Zambia’s continued interventions in the money market, alongside improved mining sector inflows, are expected to support near-term stability.

As November trading closes, today’s performance positions the kwacha among Africa’s better-performing currencies for the week, maintaining resilience despite global dollar strength.