Market News
Naira seen extending gains as African currencies hold steady
Ebury senior market analyst Roman Ziruk said in a report that the outlook for the kwacha remains optimistic for the year
Nigeria’s currency is expected to strengthen further against the U.S. dollar in the coming week, supported by robust foreign exchange inflows and sustained dollar sales to bureau de changes (BDCs), traders said on Thursday.
The naira has recently firmed across markets, narrowing the gap between official and parallel exchange rates. On the official market, the currency was quoted at N1,344 per dollar on Thursday, compared with N1,357 a week earlier. In street trading, the naira exchanged at N1,385 per dollar.
Market participants attributed the currency’s improved performance to increased dollar liquidity and targeted interventions by the Central Bank of Nigeria.
Ghana’s cedi is also likely to remain broadly unchanged, supported by improved interbank liquidity and softer corporate demand for dollars. LSEG data showed the cedi trading at 10.95 to the dollar, compared with 10.99 a week ago.
Bertrand Baazeng, a trader with Absa Bank Ghana, said the currency is expected to remain range-bound in the week ahead, barring significant external shocks. Ronald Mensah of Stanbic Bank Ghana echoed that outlook, citing stable market conditions.
Uganda’s shilling is seen trading around current levels, underpinned by dollar inflows from charities and commodity exporters. Commercial banks quoted the currency at 3,575/3,585 to the dollar, compared with 3,535/3,545 a week earlier.
Traders noted that end-of-month flows from non-governmental organisations and exporters typically provide additional support to the local unit.
Zambia’s kwacha is forecast to remain steady, reflecting improving economic conditions and positive investor sentiment in Africa’s second-largest copper producer. Commercial banks quoted the kwacha at 19.08 per dollar on Thursday, slightly weaker than 19.04 a week ago.
Ebury senior market analyst Roman Ziruk said in a report that the outlook for the kwacha remains optimistic for the year, supported by macroeconomic improvements.
Overall, traders across the region expect relative calm in foreign exchange markets, with Nigeria’s naira standing out as one of the few currencies projected to extend recent gains in the near term.
