NAIROBI, April 27 The Zambian kwacha is expected
to be stable against the dollar in the week ahead while the
Kenyan and Ugandan shillings will come under pressure from
importer demand for dollars.
The Zambian kwacha is likely to remain firm against
the dollar next week due to tight liquidity and hard currency
inflows from foreign investors investing in government
At 0851 GMT, the currency of Africa’s No.2 copper producer
was quoted at 9.3200 per dollar from 9.3000 a week ago,
according to Thomson Reuters data.
"As long as these conditions are in place we expect the
currency to trade in a similar fashion next week. A trading
range of between 9.250 and 9.400 is expected," one trader with a
commercial bank said.
The Kenyan shilling is expected to ease in the week
ahead due to cyclical end-month demand for dollars from oil and
merchandise importers, traders said.
At 0856 GMT, commercial banks quoted the shilling at
103.15/35 per dollar, compared with 103.30/50 at last Thursday's
"There is good demand from retail players and energy. I see
the shilling coming under pressure in the short term," said a
trader from a commercial bank.
The Ugandan shilling is expected to weaken and test a
key psychological level over the next week, mainly due to demand
for dollars by importers.
At 0901 GMT, commercial banks quoted the shilling at
3,635/3,645, weaker than last Thursday's close of 3,610/3,620.
David Bagambe, a trader at Diamond Trust Bank, said the
market expected elevated demand from fuel importers and
manufacturers and that "it's possible this demand will push the
rate toward the 3,700 level."
The Tanzanian shilling is expected to trade in a
tight range in the days ahead, underpinned by a slowdown in
Commercial banks quoted the shilling at 2,230/2,240 to the
dollar on Thursday, stronger than 2,237/2,242 a week ago.
"The shilling has been stable for quite some time now. We
don't expect it to breach the 2,230-2,240 range next week," said
a trader at a commercial bank.
The Nigerian naira is seen trading within a range
in the coming days on the back of the central bank pumping
dollars into the foreign exchange market to improve liquidity
and narrow the spread between official and black market rates.
The local currency was quoted at 388 to the dollar on the
black market on Thursday, stronger than 395 per dollar last
week, while it was trading around 305.90 a dollar on the
official interbank market compared with 306.20 a dollar last
The central bank has been intervening in the official market
to try to narrow the spread between the official and unofficial
markets and has sold about $4 billion in dollars since February,
analysts say, a pace they doubt it can sustain.
On Monday, the bank said it will now allow investors to
engage in foreign exchange trading at rates the buyers and
sellers set, a move it hopes will increase the amount of dollars
available in Africa's biggest economy.
Ghana's cedi currency is likely to remain stable
against the dollar in the next week and could firm slightly
after it swung between 4.1600 to the dollar and 4.2200 in the
previous week, a trader said.
"Corporate demand has been firm in the past week, causing
the (currency) pair to stay flat despite strong inflows into the
market," said Joseph Biggles Amponsah of Dortis Research in
"The pair is expected the continue on the same trajectory
next week as both sides remain fairly balanced. Bank of Ghana's
forex auctions are also expected to add some firmness to the
local currency," he said.
The cedi touched record lows of 4.720 last month but it has
since rebounded, in part because of renewed economic confidence
following the annual budget speech in March.
(Reporting by John Ndiso, Chris Mfula, Elias Biryabarema,
Fumbuka Ng'wanakilala, Oludare Mayowa and Matthew Mpoke Bigg;
Editing by Adrian Croft)