Market News
AFRICA-FX-Ghana's currency back under pressure, Uganda's on front foot - REUTERS
Ghana's currency is expected to weaken against the U.S. dollar over the next week, while Uganda's shilling is forecast to strengthen. The currencies of Zambia, Nigeria and Kenya are expected to remain broadly stable, according to traders.
Ghana
The Ghanaian cedi is expected to weaken as corporate demand for foreign currency continues to exceed available supply.
The cedi traded at 11.00 per U.S. dollar, compared with 10.90 a week earlier.
Ronald Mensah, a trader at Stanbic Bank Ghana, said renewed dollar demand from both local companies and offshore investors had put the currency under pressure.
Dollar liquidity is expected to remain tight, with central bank spot auctions continuing to provide an important source of foreign-currency supply.
Demand at the latest central bank FX auction reached $399 million, compared with an allocation of only $125 million, highlighting significant unmet dollar demand.
Uganda
The Ugandan shilling is expected to strengthen, supported by month-end foreign-currency inflows from charities and commodity exporters.
Commercial banks quoted the currency at 3,715/3,725 per dollar, compared with 3,705/3,715 a week earlier.
Zambia
The Zambian kwacha is expected to remain around current levels, supported by strong copper prices.
The currency has shown little reaction to the country's recent general election.
Commercial banks quoted the kwacha at 18.99 per dollar, compared with 18.98 on the Wednesday before the election.
Nigeria
The Nigerian naira is expected to remain broadly stable, supported by foreign-currency inflows from offshore investors.
The naira traded at N1,345 per dollar on the official market, compared with N1,358 a week earlier.
On the parallel market, the currency was trading at approximately N1,410 per dollar.
A trader expects the official exchange rate to trade between N1,348 and N1,360 per dollar over the coming week, citing healthy FX inflows.
Reporting: Christian Akorlie, Elias Biryabarema, Chris Mfula, Chijioke Ohuocha and Vincent Mumo Nzilani
Editing: Alexander Winning
