ACCRA, March 2 Ghana's cedi could be affected by
how markets receive the new government's first budget presented
on Thursday, while the Ugandan shilling will likely weaken on
increased dollar demand from manufacturers and fuel importers.
Ghana's volatile cedi has been under pressure since
early February on a persisting strong corporate greenback
demand, touching record lows this week, but it's next moves
could be determined by it's annual budget.
It was trading at 4.7400 per dollar by on Thursday compared
to 4.5850 last week, and down around 11 percent since January.
"If the budget restores confidence then we are likely to see
foreign investors show interest in cedi investments once again,
and this could go a long way to firm up the currency," Joseph
Biggles Amponsah, analyst at the Accra-based Dortis Research
The Ugandan shilling is seen weakening due to dollar
demand by importers. Commercial banks quoted the shilling at
3,590/3,600, weaker than last Wednesday's close of 3,580/3,590.
"Dollar demand is showing signs of picking up again,
especially from oil importers and manufacturers," said David
Bagambe, a trader at Diamond Trust Bank Uganda.
Nigeria's naira is seen steady in the coming days
after the currency responded to central bank's measure to close
the gap between official and parallel market rates led to sharp
appreciation of the naira.
Last week, central bank started systematic injections of
dollars to cater for the needs of private individuals and some
corporations in a move to ease pressure on the local currency.
The unit traded at 305.25 to the dollar on Thursday on the
official market, same level it has traded since August. It
traded at 455 per dollar on the black market on the day versus
505 last Thursday.
The naira gained 2.2 percent to 450 per dollar on the black
market on Tuesday, a more than four-month high, a day after the
central bank sold dollars on the interbank market to increase
dollar liquidity and support the naira.
The kwacha is expected to remain on the front foot
next week supported by increased dollar inflows into Africa's
second-biggest copper producer.
At 1118 GMT, commercial banks quoted the kwacha at 9.6500
per dollar from a close of 9.5900 a week ago.
"The Kwacha is expected to continue its recent bullish run
against the dollar as hard currency inflows appear to outweigh
consumer green-back demand," Zambia National Commercial Bank
said in a note.
The Kenyan shilling is seen strengthening due to
foreign exchange inflows from portfolio investors interested in
buying government bonds.
Commercial banks quoted the shilling at 102.70/90 to the
dollar, compared with 103.40/60 at last Thursday's close.
"The bonds are denominated in shillings and the investors
are selling dollars in order to buy the shilling and that supply
of dollars is making the shilling strengthen," said a trader
from a commercial bank.
The Tanzanian shilling is expected to hold firm
against the dollar in the coming days, buoyed by a slowdown in
Commercial banks quoted the shilling at 2,230/2,240 to the
dollar on Thursday, barely moved from 2,235/2,240 a week ago.
"The outlook is stable... nothing much is happening in the
market on both the demand and supply sides. Business is very
slow," said a trader at a commercial bank.
(Reporting by Kwasi Kpodo, Elias Biryabarema, Oludare Mayowa,
Chris Mfula, John Ndiso, Fumbuka Ng'wanakilala; Compiled by
Tanisha Heiberg; Editing by James Macharia)