NAIROBI Feb 23 The Nigerian naira is expected
to appreciate on the black market after the central bank said it
will offer some customers dollars at a preferential rate.
The Nigerian naira is expected to gain on the black
market in the days ahead while it is likely to weaken on the
official interbank market as the central bank starts selling
dollars to some private individuals.
The central bank said on Monday it will offer dollars to
individual buyers at 20 percent above the official rate in a
move to ease pressure on the local currency, and close the gap
between the official market and the black market.
The naira was quoted at 505 to the dollar on the black
market on Thursday, firmer than 516 a dollar last week. It was
stable on the official interbank window at 305.5 to the dollar.
The Kenyan shilling could weaken in the coming week
due to end of the month demand from oil importers and
manufacturers, traders said.
At 0835 GMT, commercial banks quoted the shilling at
103.40/60 to the dollar, compared with 103.55/75 at last
"We expect further easing as the end month cycle kicks in,"
said a trader from a commercial bank.
Ghana's cedi could stay at its current record low
until next week when the new government presents its first
budget and presents its plans to balance the country's finances.
The currency weakened this month when the government
announced it had uncovered contract arrears equivalent to $1.6
billion and a budget deficit around double the 2016 target of
5.25 percent of GDP.
It touched a low of 4.5850 to the dollar on Thursday,
compared with 4.4600 a week ago, despite a fortnightly central
bank dollar auction on Wednesday.
The Zambian kwacha is expected to continue trading
with a bullish tone next week supported by corporate dollar
conversions to pay salaries and other month-end obligations.
On Thursday, commercial banks quoted the currency at 9.5600
per dollar, slightly firmer than a close of 9.7000 a week ago.
"The local unit is expected to hold onto its gains in the
interim," the Zambian branch of Atlas Mara, BancABC said in a
The Ugandan shilling is forecast to be stable in the
coming days due to flat demand for dollars while conversions by
charities paying salaries could boost supplies.
Commercial banks quoted the shilling at 3,580/3,590, little
changed from last Thursday's close of 3,585/3,595.
"The economic slowdown means appetite for dollars will
remain slow," said David Bagambe, trader at Diamond Trust Bank.
The World Bank has lowered Uganda's 2016/17 growth forecast
to 5 percent from a previous projection of 5.5 percent, citing
the impact of non-performing loans and insecurity in
neighbouring South Sudan.
The Tanzanian shilling is expected to hold steady
against the dollar in the coming days, helped by a slowdown in
demand for greenbacks.
Commercial banks quoted the shilling at 2,235/2,240 to the
dollar on Thursday, little moved from 2,230/2,240 a week ago.
"We do not expect to see much movement in the market next
week. The shilling will likely trade in the same 2,230-2,240
range," said Moses Kawiche, a treader at CRDB Bank.
(Reporting by John Ndiso, Elias Biryabarema, Fumbuka
Ng'wanakilala, Chris Mfula, Kwasi Kpodo and Oludare Mayowa
Editing by Jeremy Gaunt)