Market News

LUSAKA, July 30 (Reuters) - The currencies of Zambia and Ghana are expected to weaken against the dollar next week, while Uganda's shilling is expected to firm and Kenya's and Nigeria's currencies are seen broadly stable, traders said.

ZAMBIA

Zambia's kwacha will likely be under pressure as demand for hard currency picks up and market participants remain cautious ahead of the country's presidential and parliamentary elections on August 13.

On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 18.95 per dollar, compared with 18.54 a week ago.

GHANA

Ghana's cedi could edge lower against the dollar next week on persistent corporate dollar demand pressures from the energy and commerce sectors.

LSEG data showed the cedi trading at 11.66 to the dollar on Thursday, compared with 11.60 a week earlier.

"We expect the greenback to maintain its edge against the local unit in the week ahead," one trader said.

"FX demand has remained firm, driven by the energy and commerce sectors, as well as corporate demand linked to dividend repatriation. Central bank FX supply has moderated in July compared with June," the trader added.

Another trader said the unmet dollar demand from central bank auctions could add to the pressure on the cedi in coming sessions.

However, the trader expected the IMF disbursement of the final $371 million of the $3 billion Extended Credit Facility (ECF) programme to support the cedi in the near term.

UGANDA

The Ugandan shilling is expected to firm, helped by some month-end dollar inflows from commodity exporters and charities.

Commercial banks quoted the shilling at 3,745/3,755, compared to last Thursday's close of 3,755/3,765.

A trader at a leading commercial bank in Kampala said month-end inflows from exporters and charities, together with slower demand from energy importers, should support the currency.

KENYA

The Kenyan shilling is expected to hold broadly stable after recent losses, supported by month-end diaspora inflows.

Commercial banks traded the shilling at 129.15/30 per dollar, compared with 129.40/60 a week earlier.

NIGERIA

Nigeria's naira is expected to remain range-bound, supported by central bank dollar sales after easing this week.

The naira traded at 1,373 per dollar on the official market on Thursday, compared with 1,369 a week earlier, while the parallel market quoted around 1,405 per dollar.

A trader expects the currency to trade between 1,370 and 1,378 next week, adding that the central bank is likely to increase liquidity if the exchange rate weakens beyond 1,390.

Reporting by Christian Akorlie, Vincent Mumo Nzilani, Elias Biryabarema, Chijioke Ohuocha and Chris Mfula. Editing by Nilutpal Timsina and Tasim Zahid.