Market News

ACCRA, April 9 (Reuters) – African currencies are expected to be mixed in the next week to Thursday as markets watch whether the fragile U.S.-Iran ceasefire will hold, traders said.

GHANA

Ghana’s cedi could slip as dollar demand is expected to stay strong.

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LSEG data showed the cedi trading at 11.00 to the dollar on Thursday, compared to 10.98 a week earlier.

“The cedi continues to weaken amid sustained buying pressure from local corporates, with demand expected to remain elevated in the coming sessions,” said Ronald Mensah, trader at Stanbic Bank Ghana.

Another trader said high oil prices due to the Middle East conflict were also driving FX demand, hurting the cedi.

ZAMBIA

Zambia’s kwacha is likely to be volatile.

On Thursday commercial banks quoted the currency at 19.46 per dollar from 19.53 a week earlier.

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Access Bank said in a note that the kwacha would probably see “episodic volatility” given the shaky nature of the U.S.-Iran truce and how energy flows were shaping market sentiment and macroeconomic outcomes.

KENYA

Kenya’s shilling faces an uncertain path in the coming days, as traders remain jittery due to the Iran conflict.

On Thursday the shilling traded at 129.10/129.40 per dollar, stronger than last Thursday’s close of 129.95/130.25.

A trader said dollar demand was high but that diaspora inflows were countering that.

NIGERIA

Nigeria’s naira may be broadly stable, supported by dollar sales by the central bank and a rebound in remittance inflows following reforms to international money transfer operations.

LSEG data showed the naira at 1,376 to the dollar in intraday trading on Thursday, marginally firmer than 1,378 a week earlier.

On the street market the currency traded around 1,415 to the dollar.

“We expect the naira to hold steady, although rising corporate demand for second-quarter imports will likely test the Central Bank of Nigeria’s current liquidity buffers,” a trader said.

UGANDA

Uganda’s shilling could strengthen, helped by a slowdown in hard-currency demand from the energy sector.

Commercial banks quoted the shilling at 3,680/3,690 to the dollar, compared to last Thursday’s close of 3,715/3,725.

A trader said FX demand was expected to ease due to the U.S.-Iran ceasefire.

“Energy importers were stockpiling dollars in anticipation of further crude price increases. … The ceasefire has moderated that outlook so we anticipate a cooling in (dollar) demand,” he said.