NAIROBI, March 9 The Kenyan shilling is seen
depreciating in the week ahead through next Thursday as hard
currency inflows into local debt auctions slows while Ghana's
cedi is seen firming on healthy offshore appetite for the
The Kenya shilling could come under pressure from a
potential fall in dollar inflows into the local debt market as
the government seeks to contain yields.
At 1111 GMT, commercial banks quoted the shilling at
102.40/60 to the dollar, compared with 102.70/90 at last
The government has cancelled several debt auctions this year
to object to what it considers as high bids, angering market
"That may stem further flow of dollars in the fixed income
market," said a trader from a commercial bank.
The Tanzanian shilling is seen holding steady in the
days ahead, helped by a slowdown in business activity.
Commercial banks quoted the shilling at 2,230/2,240 to the
dollar on Thursday, unchanged from a week ago.
"There isn't much activity in the economy from either the
import or export sides. The shilling will likely remain flat
next week," said a trader at a commercial bank.
The kwacha is expected to continue trading with a
bullish tone against the dollar next week as firms convert
their dollar holdings to meet their local tax obligations.
Commercial banks quoted the currency of Africa's second
largest copper producer at 9.5760 per dollar from a close of
9.6500 a week ago.
"Value Added Tax is due on Thursday next week and this
should lead to dollar conversions," one commercial bank trader
Ghana's volatile cedi is seen firm after recovering
this week on central bank dollar sales and improved offshore
forex inflows ahead of a three-year domestic bond sale on
After touching record lows this month, the cedi recovered to
4.6750 per dollar by mid-morning on Thursday compared to 4.7400
last week. The Cedi is down around 10 percent since January,
according to Reuters data.
"The cedi is likely to trade around the 4.65 levels in the
wake of improved forex supply, partly owing to investor interest
in the 3-year bond issue," Joseph Biggles Amponsah, analyst at
the Accra-based Dortis Research said.
Nigeria's naira is seen trading in a narrow range
in the coming days, with the central bank injecting more dollars
into the market in its move to narrow the margin between
official and parallel market exchange rates.
The local currency was quoted at 465 a dollar on the black
market on Thursday, weaker than the 450-a-dollar level last
week. Commercial lenders quoted the naira at 306.20 a dollar on
the interbank market compared with 305.50 it closed at last
"The central bank should align the multiple exchange rates
in the market to restore investors' confidence and ensure the
effectiveness of its new policy," one trader said.
The Uganda shilling is seen trading with a mild bias as
demand for dollars from government agencies and foreign-owned
firms picks up.
At 1217 GMT commercial banks quoted the local currency at
3,595/3,605, weaker from last Thursday's close of 3,590/3,600.
David Bagambe, trader at Diamond Trust Bank, said dollar
demand from government agencies tends to pick up around March.
"Plus some corporates will be buying (dollars) for dividends
pay out... I think the overall trend will a depreciation bias,"
(Reporting by Kwasi Kpodo; Elias Biryabarema; Duncan Miriri;
Oludare Mayowa; Fumbuka Ng'wanakilala and Chris Mfula. Compiled
by Elias Biryabarema, editing by Pritha Sarkar)