MARKET NEWS
WEEKAHEAD-AFRICA-FX-Kenyan and Tanzanian currencies seen firm, Uganda's stable and Zambia's weak - REUTERS
NAIROBI, Nov 21 (Reuters) - Kenyan and Tanzanian currencies are expected to strengthen in the coming week as Uganda’s remains stable and Zambia’s weakens.
KENYA
The Kenyan shilling is seen stronger in the coming week due to dollar inflows from diaspora remittances, horticulture exports and offshore investors buying government debt exceeding end month dollar demand from importers, traders said.
Commercial banks quoted the shilling at 101.25/45 per dollar on Thursday, compared with 102.00/20 at last Thursday’s close.
“We expect a stronger shilling unless there is a pick up in end month demand...inflows are constant from diaspora remittances, horticulture, government securities,” said a senior trader at a commercial bank.
UGANDA
The Ugandan shilling is seen trading in a stable range in coming days on the back of a tapering of hard currency demand by merchandise importers.
At 0938 GMT commercial banks quoted the shilling at 3,682/3,692, compared to last Thursday’s close of 3,685/3,695.
“Importers in recent days have stayed on the sidelines and I expect that will continue to be the case in the short term,” a trader at a commercial bank said.
Most importers, he said, had already purchased the hard currency they needed to ship in goods for December holiday shoppers.
ADVERTISEMENT
Possible inflows into a Treasury debt auction next week from offshore investors will also give additional support to the local currency, he added.
The shilling will likely oscillate in the 3,680-3,700 range, he said.
TANZANIA
The Tanzanian shilling is expected to appreciate next week due to dollar inflows from cashew nut exports and corporates meeting their end-month obligations.
Commercial banks quoted the shilling at 2,298/2,308 on Thursday, up from an average of 2,301/2,311 a week earlier.
“We expect it to appreciate next week due to increase in cashew nuts exports,” a foreign exchange trader at one of the commercial banks said.
ZAMBIA
The kwacha is likely to remain under pressure versus the U.S. dollar next week due to rising demand for hard currency to meet energy and agricultural sector imports.
On Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 14.1600 per dollar from a close of 14.0650 a week ago.
Bank of Zambia governor Denny Kalyalya said on Wednesday the kwacha was under pressure due to higher demand for petroleum, electricity and fertiliser imports. (Reporting by John Ndiso, Elias Biryabarema, Nuzulack Dausen and Chris Mfula; Compiled by Maggie Fick; Editing by Chizu Nomiyama)