NAIROBI, Sept 8 The Kenyan, Ugandan and
Tanzanian shillings and Nigerian naira are likely to hold steady
against the dollar in the next week to Thursday while Zambia's
kwacha will weaken, traders said.
The Kenyan shilling is expected to remain stable as
dollar sales by non-governmental organizations support demand
from importers, traders said.
At 0848 GMT, commercial banks quoted the shilling at
101.20/40 to the dollar, compared with 101.30/40 at last
"Non-governmental organisations and multinationals are
selling dollars to fulfil their mid-month obligations," said a
trader from one commercial bank.
The Ugandan shilling is seen holding steady as
importer demand for dollars weakens, undermined by lower
Commercial banks quoted the shilling at 3,380/3,390, weaker
than last Thursday's close of 3,370/3,380.
"Interest from importers has been sagging for a couple of
weeks now and we've not seen any signs this is about to change,"
said a trader from a leading commercial bank, who added weakness
in the broader economy was hurting imports.
The Tanzanian shilling is expected to remain steady,
buoyed by a slowdown in demand for dollars traders.
Commercial banks quoted the shilling at 2,180/2,190 to the
dollar on Thursday, unmoved from a week ago.
"There is a slowdown in demand for dollars in the market and
this will likely help the shilling to remain firm at the same
levels next week," said Nyanjula Seleman, a dealer at Commercial
Bank of Africa Tanzania.
The kwacha is expected to remain under pressure next
week due to limited in flows of hard currency into Africa's
second-largest copper producer.
At 1207 GMT on Thursday, commercial banks quoted the local
currency at 10.2500 per dollar from 9.6500 a week ago.
"In the absence of huge foreign exchange inflows, the
depreciation of the kwacha is likely to continue into next
week," independent financial analyst Maambo Hamaundu said.
Ghana's cedi is expected to hold steady next week on
improved forex inflows to match dollar demand by local firms and
businesses, traders said.
The local currency was trading at 3.9680 to the dollar by
1120 GMT on Thursday, compared with3.9650 a week ago, and down
around 4 percent since January.
"We don't expect any pressure on the local currency next week
... demand and supply are fairly matched," Barclays Bank Ghana
trader Jake Brobbey said.
The naira is likely to trade little changed even
as the central bank struggles to support the local currency by
injecting dollars into the official market daily.
The naira has consistently closed at 305 to the dollar on
the interbank market in the week to Thursday on support from the
central bank's daily intervention.
It has been broadly flat at 425 to the dollar on the
parallel market, compared with 423 a dollar last week. Traders
said dollar supply had improved after the central bank lifted
suspension of eight banks banned from the interbank currency
market for failing to remit money owed to the government.
(Reporting by John Ndiso, Fumbuka Ng'wanakilala, Elias
Biryabarema, Kwasi Kpodo, Oludare Mayowa and Chris Mfula,
Compiled by George Obulutsa, editing by Larry King)