Kwacha Edging Lower

November 2006 | Market Alert

The Zambian kwacha has been subject to some weakness of late, now trading in the support region of ZMK4,000/US$, and we acknowledge downside risks to our end of period forecast of ZMK3,500/US$. Although the unit could experience some further sell-off in the near term (potentially towards the last trough around ZMK4,400/US$), our sanguine view of the economy - propped up by the re-election of president Levy Mwanawasa - tilts our currency outlook towards strength over the medium term.

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