Story of the Day:
In an article entitled, “Chibamba Explains Kwacha Depreciation,” on September 8, 2021 the economist Chibamba Kanyama attributed the Kwacha’s depreciation to the importation of crude oil and therefore a restocking of Indeni Refinery. Read more
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Zambian and Ugandan currencies are likely to firm against the U.S. dollar next week, as Kenya and Nigeria’s are expected to soften. On Thursday, the kwacha appreciated to 16.0000 per dollar from a close of 17.8078 a week ago. Zambia National Commercial Bank (ZANACO) said FX-holding entities would start converting to the local unit to avoid further exchange losses. Read more: Reuters
Felix Mutati, Minister of Technology and Science of Zambia, and Hua Liu, IAEA Deputy Director General and Head of the Department of Technical Cooperation, signed Zambia’s Country Programme Framework (CPF) for the period of 2022–2027 to identify priority areas where the transfer of nuclear technology and technical cooperation resources will be directed to support national development goals. Read more: IAEA
The Zambian kwacha is expected to strengthen against the US dollar going into 2022. Economist Lubinda Haabazoka forecasts that if we receive normal rainfalls and that we manage to hold debt repayments at least up to December next year, the kwacha can easily trade at K10 per dollar by December 2022. Read more: Zambian Observer
Information and Media Minister CHUSHI Kasanda says the new dawn administration is working at improving infrastructure and operations of the public media. Ms. Kasanda has since urged the public media managements to be proactive in relaying information to government over their challenges. Read more: ZNBC
International Business and Finance
The International Trade Secretary, Anne-Marie Trevelyan, has warned the US the UK could step up retaliatory measures if punitive tariffs on UK steel exports are not lifted soon. She has been in the US for talks with the Commerce Secretary Gina Raimondo. On her return, Ms Trevelyan said “I was very clear that the pressures we are under to use countervailing measures if we can’t solve the problem are becoming more acute,” Read more: BBC News
A crisis at the world’s most indebted company has worsened after news it had missed a crucial repayment deadline. Chinese property giant Evergrande, whose liabilities exceed $300bn, failed to meet interest payments to international investors. That prompted Fitch, an agency that rates companies’ financial risk, to declare Evergrande in default. Read more: BBC News
Kenya’s public debt increased by about 7.75 billion U.S. dollars in the year to September to hit 70.8 billion U.S. dollars due to accelerated external and domestic borrowing, the National Treasury said in a report released on Wednesday. Of the gross public debt that stood at 63.05 billion dollars at the end of September 2020, 50.8 percent was external and 49.2 percent domestic. Read more: CGTN
China is grappling with a slowing economy, yet its currency has rarely been stronger. The yuan is also outperforming the US dollar this year even as the Fed prepares to hike interest rates. Read more: CNN
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In 36 trades recorded yesterday, 11,560 shares were transacted resulting in a turnover of K98,237.00. Trading activity was recorded in Airtel, Lafarge, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 5,590.72 with a percentage change of 2.60.
Chart of the Day: