LUSAKA, Nov 1 (Reuters) - Zambia's Bond and Derivatives Exchange will delay trading currency futures beyond next week to allow the clearing bank to upgrade its system, its deputy chief executive said on Friday.

Peter Sitamulaho told Reuters Zanaco Bank, the exchange's clearing bank, had asked that the scheduled Nov. 5 start date be delayed to allow it to complete a system upgrade.

"They have asked that we give them a bit of time but we are hoping we can still go live within November," Sitamulaho said.

The exchange will trade in currency futures to hedge against foreign exchange risk after Zambia introduced a law reinforcing the use of the local kwacha currency. ID:nL5N0II0TS

Zambia's kwacha would be traded against the U.S. dollar, the South African rand ZAR=D3 , the British pound GBP= and the euro EUR= , he said.

Zanaco Bank had agreed to be the clearing bank and Bank ABC would handle the trading for the exchange.

Last year, Zambia introduced a law requiring mining companies and other exporters to write their contracts in the kwacha currency, exposing exporters and importers in Africa's top copper producer to foreign exchange risk. ID:nL5N0F129E

(Reporting by Chris Mfula; Editing by Ed Stoddard)

((chris.mfula@thomsonreuters.com))

Keywords: ZAMBIA EXCHANGE/