The central bank received bids worth K1.2 billion and allocated K1.036 billion at Treasury bill (T/bill) auction 20 of 2014 today. K900 million of T/bills were up for auction:
The auction was 1.3 times oversubscribed with the 364 day T/bill receiving bids worth K805 million (K1 billion at auction 19). This is in stark contrast to auctions held in the first half of the year which were plagued with under-subscription as the central bank tightened monetary policy to prop up a depreciating Kwacha.
364 day rate
The 364 day T/bill fell by 101 basis points to 17.99 percent, its lowest in the last five months as demand for it has shown significant strength over the last few auctions:
The Kwacha briefly traded at K6.19 to the dollar before returning to the K6.28 level of the previous day.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *