Market News

Zambia's currency is expected to come under pressure in the next week to Thursday, Ghana's and Uganda's may gain, and Kenya's and Nigeria's could be broadly steady, traders said.

ZAMBIA

Zambia's kwacha USDZMW is likely to face pressure next week due to sustained hard-currency demand and limited supply.

On Thursday the kwacha was trading at 28.45 per dollar from 28.67 a week ago.

Access Bank said in a note that the kwacha was likely to weaken in the absence of meaningful foreign-currency inflows.

GHANA

Ghana's cedi USDGHS should be on the front foot against the dollar as offshore inflows increase and the central bank continues to intervene on the currency market.

LSEG data showed the cedi trading at 15.2500 to the dollar on Thursday, compared to 15.4200 at last Thursday's close.

"We expect the cedi to trade stronger against the dollar in the coming week on account of improved interbank market liquidity and consistent central bank FX auctions," Andrews Akoto, head of trading at Absa Bank Ghana, said.

Chris Nettey, head of trading at Stanbic Bank Ghana, said the cedi could be helped by foreign investors' renewed interest in cedi-denominated assets.

UGANDA

Uganda's shilling USDUGX is seen trading with a firming tone on the back of month-end inflows of hard currency from charities and commodity exporters.

Commercial banks quoted the shilling at 3,660/3,670 to the dollar, unchanged from last Thursday's close of 3,660/3,670.

The market was expecting inflows from non-governmental organisations, who typically convert some of their hard-currency holdings at the end of the month to clear operational expenses like salaries, one trader said.

Inflows from exports of commodities like coffee and tea also usually increase around the end of the month.

"The shilling will get some momentum from these flows," he said, adding he anticipated the local unit would trade in the 3,645-3,665 range.

KENYA

Kenya's shilling USDKES is expected to hold around current levels in the coming week.

The shilling traded at 129.10/60 per dollar on Thursday, compared with last Thursday's close of 129.45/95.

"We haven't seen the central bank on the market this week so the local currency is floating on its own," a trader said.

NIGERIA

Nigeria's naira is also seen holding steady thanks to central bank interventions.

The naira USDNGN was quoted around 1,605 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,599 naira a week earlier.

The unit was sold at 1,608 naira to the dollar in street trading (NGNP=) on Thursday.

"We are looking at rates hovering between 1,590/1,605 next week. Over the course of the week rates have been between 1,595/1,605 driven by the interventions central bank has done," a trader said.