Mineral royalty tax conversions support weak Kwacha

The kwacha posted a record 6.45% appreciation as players converted dollars to fund mineral royalty taxes next week

The kwacha in Africa’s copper producer Zambia, rallied 6.45% to K11.975/USD from USD12.89/USD as players converted dollars to kwacha to fund mineral royalty tax obligations next week.

These dollar sells gave the weak kwacha temporal support to reverse the year to date 22% losses by 6%. However the market is still weary of higher oil import costs as brent crude trades at USD85/bbl.

The kwacha has been losing streak following negative sentiment around the copper producers debt position and a strong dollar environment as an autopsy of the US and China trade wars.

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