NAIROBI (Reuters) -The Kenyan and Nigerian currencies are expected to weaken slightly against the dollar in the next week to Thursday, while Uganda’s and Zambia’s may hold steady and Ghana’s could add to recent gains, traders said.
KENYA
Kenya’s shilling is forecast to fall due to increased importer demand for dollars from sectors such as food-processing.
Commercial banks quoted the shilling at 129.00/129.50 per dollar on Thursday, the same level it closed a week ago.
“We could see a slight weakening of the shilling, but not in a major way. We will expect (dollar) demand from other sectors,” one trader said.
NIGERIA
Nigeria’s naira could slip on the official market as importer foreign-currency demand outweighs central bank dollar sales.
The naira was quoted around 1,596 to the dollar in intraday trading on Thursday, versus a closing quote of 1,608 naira per dollar a week earlier.
The unit was sold at about 1,630 naira to the dollar in street trading on Thursday.
“The central bank’s interventions to curb volatility will continue, but second-quarter import demand pressures could offset these stabilisation efforts,” a trader said.
UGANDA
Uganda’s shilling is seen trading mostly stable, helped by limited dollar demand and inflows from commodity exporters.
On Thursday commercial banks quoted the shilling at 3,645/3,655 per dollar compared with last Thursday’s close of 3,656/3,666.
“Activity on the buying side is very slow, probably from weak consumer spending, while on the other side inflows are quite significant,” a trader said.
“I don’t think we’ll see big movement on either side.”
He forecast the local unit would trade in a range of 3,640-3,660 versus the dollar in the coming days.
ZAMBIA
Zambia’s kwacha is expected to hold steady, supported by hard-currency sales by companies preparing to pay taxes.
On Thursday the kwacha was quoted at 27.00 per dollar from 26.50 per dollar a week ago.
“There is VAT (Value Added Tax) which is due next week and this should support the kwacha,” one financial analyst said.
GHANA
Ghana’s cedi could extend its recent rally on the back of strong foreign-currency inflows and weaker corporate demand while central bank interventions continue.
LSEG data showed the cedi trading at 12.40 to the dollar on Thursday, compared to 13.15 per dollar at last Thursday’s close.
“The cedi continued to post further gains against the dollar this week, supported by easing USD demand following several weeks of strong inflows and sustained intervention by the central bank,” said Chris Nettey, head of trading at Stanbic Bank Ghana.
“We expect this trend to persist in the coming sessions,” he added.
(Reporting by George Obulutsa, Elisha Bala-Gbogbo, Elias Biryabarema, Chris Mfula and Christian Akorlie;Editing by Alexander Winning)
