Lusaka - Zambia's kwacha jumped more than 1.7 percent to 6.9850 against the dollar on Thursday, lifted mainly by increased inflows of the US currency from foreign investors.
Zambia's central bank has said it will on Friday auction a total of 1 billion Zambian kwachas ($142 million) worth of 2-year, 3-year, 5-year, 7-year, 10-year and 15-year bonds.
Commercial bank traders anticipate the auction would attract a lot of foreign investors keen on Zambian debt.
“There is increased dollar supply ahead of tomorrow's bond auction,” one commercial bank trader said.
Zambia's central bank governor said this month a recent resolution to a mining tax impasse between the government and foreign mining companies will lessen negative sentiment in the economy and mitigate inflationary pressures.
Reuters