ZANACO Treasury Newsletter Tuesday, 26th April, 2022

Contact the Treasury Team: Virginia Mwalilino (0977 561166), Nyangu Mwansa (0977 600228), Mudenda Sikapoto (0977 796025), Nana Mukwiza (0966 745656) ,Roy Mbazima (0977 199495), Jibinga Jibinga (0977 836332), Kawang’u Sakuwaha (0972 973318) Landlines: +260-(211)-425 795/425 796/425 798/4257 99/+260 977 915903/+260 961 050352

Local Currency Markets Local Money Markets

Monday’s USD/ZMW currency trading saw the local unit trading give up Market liquidity was ZMW2,505.04 million from ZMW1,486.32 million record some gains against the US dollar on the back of reduced supply flows for the ordered earlier while interbank activity was ZMW498.00 million from day.

The Zambian Kwacha opened trading at K16.9000/16.9500 per US dollar ZMW445.00 million traded previously and had by close of business decelerated to 0.18% weaker at K16.9300/16.9800 per US dollar on the bid and offer respectively. The weighted overnight interbank rate was 9.00%

In today’s trading session, we anticipate the Zambian Kwacha to be stable, with demand and supply quantum dictating the direction the currency takes.

Indicative Spot Rates/ZMW
USD ZAR EUR
Spot 16.8639/17.1961 1.0752/1.0964 18.0983/18.4549

Indicative Cross Currency Spot Rates
EUR GBP ZAR
Spot 1.0525/1.0943 1.2513/1.3011 15.3817/15.9937
Interest rates
Fixed Deposit
(ZMW) Fixed Deposit
(USD) Savings Accounts (ZMW)
30 days – 3.5% 30 days – 0.10% Private Savings 1.50%-4.50%
60 days – 4.5% 60 days – 0.15% Preferred Savings 1.50%
90 days – 5.5% 90 days – 0.20% Zanaco Savings 1.50%
180 days –6.5% 180 days – 0.11% Zanaco Savers 3.00%
1 year – 8% 1 year – 0.17% Sure Save 4.00%
ZMW Base Rate – 9.00% Treasure Chest 4.00%
USD Base Rate – 11.50% Savings Pensioner 1.50%

International Currencies
Sterling:LONDON, April 25 – (Reuters) Sterling fell on Monday to its lowest level since September 2020 against a strengthening dollar, while money markets scaled back their bets on future monetary policy tightening by the Bank of England (BoE).

The pound was down 0.8% to $1.2731 in afternoon trading after earlier hitting $1.2706, its lowest mark since September 2020. On Friday it suffered its biggest daily drop since September 2020.

Euro:LONDON, April 25 (Reuters) – The U.S. dollar scaled two-year peaks, as a wave of risk aversion hit global markets, while the Chinese yuan posted its largest three-day losing streak in nearly four years on growing worries of an economic slowdown in the world’s second-largest economy. Against a basket of its rivals , the dollar rose to 101.86, a level it last tested in March 2020.

It was last at 101.76, up 0.7%, its largest daily percentage gain since March 11.
Rand: JOHANSBURG, April 25 (Reuters) -The South African rand continued to plunge lower on Monday, under pressure from a strong dollar as a wave of risk aversion swept through global markets. At 1430 GMT, the rand traded at 15.7700 against the U.S. currency, down around 0.9% from its Friday close and at its weakest in more than three months.

Local Money Market Rates

Treasury Bills
Tenor Yield
91-days 9.3000%
182-days 10.8024%
273-days 11.0001%
364-days 13.7500%

Govt. Bonds
Tenor Yield
2 Yrs. 17.95% -4bp
3 Yrs. 20.00% 0bp
5 Yrs. 22.25% 0bp
7 Yrs. 24.50% 0bp
10 Yrs. 25.49% 0bp
15 Yrs. 26.00% 0bp

Inflation (y/y)
Current (March) Previous ( February)
13.1% 14.2%
Zanaco Share Price
ZMW 2.50

International Commodities
Gold: SINGAPORE, April 26 (Reuters) – Gold prices rose on Tuesday after hitting a near one-month low in the previous session, as a slight pullback in the U.S. dollar and lower Treasury yields increased bullion’s appeal.

Gold prices rose on Tuesday after hitting a near one-month low in the previous session, as a slight pullback in the U.S. dollar and lower Treasury yields increased bullion’s appeal.

Oil: NEW YORK, April 25 (Reuters) -Oil slumped about 4% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.

Brent futures fell $4.33, or 4.1%, to settle at $102.32 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.53, or 3.5%, to settle at $98.54. Also pressuring oil, the U.S. dollar.

Copper: LONDON, April 26 (Reuters)-London copper prices on Tuesday rose from a more than two-month low hit in the previous session, as a slight pullback in the U.S. dollar and hopes for more economic stimulus from top metals consumer China lifted sentiment.

Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 1.4% at $9,903 a tonne, as of 0230 GMT, after falling to its lowest since Feb. 9 on Monday.

The most-active May copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.9% to 73,350 yuan ($11,200.01).