NAIROBI (Reuters) – The Kenyan, Nigerian, Ghanaian and Zambian currencies are forecast to remain broadly steady against the dollar in the next week to Thursday, while Uganda’s shilling is expected to strengthen, traders said.
KENYA
Kenya’s shilling is expected to be stable, with importer dollar demand low, traders said.
Commercial banks quoted the shilling at 129.00/50 per dollar, compared with last Thursday’s close of 129.10/129/60.
NIGERIA
Nigeria’s naira is seen holding steady against the dollar in the coming week, buoyed by central bank dollar sales and investor confidence.
The naira was quoted around 1,530 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,540 naira a week earlier.
The unit was sold at 1,550 naira to the dollar in street trading on Thursday.
“We see the naira’s relative stability continuing, especially after the central bank reported a positive net reserve position, which has significantly boosted market confidence,” one trader said.
GHANA
Ghana’s cedi is expected to hold largely steady at current levels next week on matched demand and supply of dollars on the interbank market.
LSEG data showed the cedi trading at 15.45 per dollar on Thursday, the same as last Thursday’s close.
“Cedi remained stable against the US dollar this week, showing no significant movement as demand and supply remained well-balanced. This stability reflects the effectiveness of current market dynamics and interventions,” Chris Nettey, head of trading at Stanbic Bank Ghana, said.
Sedem Dornoo, a senior trader at Absa Bank Ghana, said given the current strong liquidity to meet corporate demands, the cedi could gain as some traders increase their shorts.
UGANDA
The Ugandan shilling is expected to strengthen, helped by dollar inflows from coffee exports and weak importer demand.
Commercial banks quoted the shilling at 3,639/3,649 Thursday, compared with last Thursday’s close of 3,660/3,670.
“Coffee is bringing in quite a large amount of inflows because of the high international prices,” said an independent foreign exchange trader.
Uganda’s earnings from coffee exports have been soaring on high international prices.
ZAMBIA
Zambia’s kwacha is expected to hold steady against the dollar next week supported by companies preparing to pay taxes. On Thursday, the currency of Africa’s second largest copper producer was quoted at 27.98 per dollar from 28.75 a week ago. “We have Pay As You Earn due next week and this is a huge tax,” one financial analyst said.
(Reporting by George Obulutsa, Christian Akorlie, Elias Biryabarema, Chris Mfula and Elisha Bala-Gbogbo, Editing by Bhargav Acharya)
