Calm returned to the FX market yesterday as the kwacha traded completely unchanged to the US dollar. The local unit was pegged at K18.1500/18.200 per dollar and stayed flat for the entire session as activity maintained at low levels. As trading picks up in today’s session, support and resistance is seen at K18.000/$ and K18.500/$ respectively
The Banks’ aggregate current account balance decreased to ZMW606.23 million from the previous close of ZMW793.60 million, a 24% decline in market liquidity amounting to ZMW187.37 million. This led to a slight decline in interbank activity from ZMW557.00 million previously to ZMW556.50 million. The cost of funds on the overnight interbank market traded at 12.08%. The Monetary Policy Committee has lowered the Policy Rate by 225 basis points from 11.5% to 9.25% to mitigate the adverse impact of COVID-19 on financial sector stability and economic activity.
Copper: LONDON, May 20 (Reuters) – Copper prices hovered near a two-month high on Wednesday ahead of a Chinese government meeting this week expected to boost demand with pledges of higher spending on infrastructure to lift the top metals consumer from a coronavirus-driven slump. Benchmark copper on the London Metal Exchange (LME) gained 0.1% to $5,360.50 tonne in official trading.