Kwacha gains amid austerity measures

The Kwacha has hit a two month high following President Edgar Lungu’s announcement of austerity measures aimed at bridging the growing budget deficit.

The kwacha has today so far gained about 6.62 percent to K10.16 ngwee per dollar, its strongest position since September.

According to the commercial banks exchange rates posted on the Bank of Zambia website today monitored by QFM News, the market average for commercial bank retail exchange rates was K9.96ngwee for buying and K10.16ngwee for selling.

The market average for interbank rates was K9.21ngwee for buying and K9.23 ngwee for selling.

The president announced government spending cuts during a press conference yesterday suspending the signing of new infrastructure contracts and restricting foreign trips by government ministers and other officials.

The kwacha has fallen more than 40 percent against the dollar in 2015 on the back of waning demand for Copper by top-consumer China.

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