ACCRA (Reuters) -The Ghanaian and Ugandan currencies are expected to strengthen in the next week to Thursday, while Nigeria’s could be stable and Kenya’s and Zambia’s may fall, traders said.
GHANA
Ghana’s cedi is expected to firm further, underpinned by strong hard-currency inflows from remittances and continued central bank support.
LSEG data showed the cedi trading at 11.70 to the dollar on Thursday, compared to 12.40 per dollar at last Thursday’s close.
“The cedi continued its appreciation streak against the dollar, breaking the 12.00 key level on the interbank market,” said Chris Nettey, head of trading at Stanbic Bank Ghana.
“We expect further appreciation in the coming sessions, supported by central bank’s ongoing interventions,” he added.
UGANDA
Uganda’s shilling is seen trading with a firming tone, bolstered by month-end foreign-currency inflows from non-governmental organisations.
Commercial banks quoted the shilling at 3,646/3,656 to the dollar, near last Thursday’s close of 3,645/3,655.
“The bias will be on the stronger side mainly from charity flows,” a trader said. Charities convert some of their hard-currency holdings around the end of the month to meet operational expenses.
NIGERIA
Nigeria’s naira is seen holding steady after strengthening this week due to foreign portfolio inflows for a central bank auction.
The naira was quoted around 1,590 to the dollar in intraday trading on Thursday, compared with last week’s quote of 1,596 naira.
The unit was sold at 1,620 naira to the dollar in street trading on Thursday.
“I expect the naira to trade between 1,585 naira and 1,595 levels next week,” one trader said. “The uptick in crude prices and FPIs (foreign portfolio inflows) this week … helped liquidity in the market.”
KENYA
Kenya’s shilling is expected to weaken slightly towards the end of May, as a modest increase in foreign exchange demand from the manufacturing sector outpaces inflows from remittances and NGO salaries.
LSEG data showed the shilling at 129.00/50 on Thursday, the same level it closed a week ago.
“We see the shilling weakening a little towards the end of the month on month-end (FX) demand from importers in the manufacturing sector,” a trader said.
ZAMBIA
Zambia’s kwacha is likely to remain under pressure as the market continues to experience rising foreign-currency demand and subdued inflows.
On Thursday the kwacha was quoted at 27.62 per dollar from 27.00 a week ago.
“In the absence of substantial dollar supply, the current trend should continue going into next week,” an analyst said.
(Reporting by Christian Akorlie, Elias Biryabarema, Chijioke Ohuocha, Hereward Holland and Chris Mfula;Editing by Alexander Winning)
