By BUUMBA CHIMBULUTHE Kwacha is likely to recover some of the current losses in the medium-long term before trading stable in the region of K16 to K18 per United States dollar, according to a forecast by Zanaco bank plc.Zanaco is basing this outlook for the local unit on elevated copper prices and positive effects of external debt restructuring.It is also basing it on the prolonged sentiment positivity on the back of International Monetary Funds (IMF’s) extended credit facility as well as a potential reversal in the complete dollarisation of mining taxes.The Kwacha is currently trading between K17.975 and K18.025 per United States dollar.“We expect a combination of external debt restructuring and IMF bailout package to attract offshore flows via Foreign Direct Investment (FDI), budget support in form of donor aid as well as investment into fixed income space at the time that Zambia has upped its borrowing appetite,” Zanaco said in its monthly newsletter.Zanaco however […]
Kwacha to recover, says Zanaco
