LUSAKA May 11 Zambia's kwacha is expected to
firm next week on increased dollar supply in the market ahead of
a government bond sale, while the Kenyan shilling is seen
slipping on a dollar squeeze amid increased demand from oil
importers and general merchants.
The kwacha is expected to stay firm next week due to
a tight supply of the local currency and an increasing amount of
dollars in the market ahead of the sale of government securities
on May 25.
By 1324 GMT on Thursday the kwacha traded at 9.1750 per
dollar from 9.1850 a week ago.
The Kenyan shilling is seen easing against the dollar
in the coming week due to increased demand from oil importers
and general merchants amid low liquidity in the money market,
At 1100 GMT, commercial banks quoted the shilling at
103.35/45 per dollar, compared with 103.05/25 at last Thursday's
"There are very little inflows, I anticipate the shilling
will remain on the back foot," said a trader from a commercial
The Nigerian naira's outlook remains stable in the
near term as the central bank efforts to improve dollar
liquidity and achieve exchange rate convergence yield positive
results, but investors remain concerned over the lack of a
flexible exchange rate.
The naira firmed to about 305.60 to the dollar on the
interbank market from 306.25 last week and was quoted at 390 a
dollar on the black market, better than the 391 level where it
traded last week.
It was quoted at 382.63 per dollar in the period enabling
foreign exchange trading at rates set by buyers and sellers,
according to the market regulator FMDQ OTC Securities Exchange.
"We expect the naira to trade within the prevailing band in
the coming days, but investors are still worried over the
multiplicity of exchange rate in the market," one senior
currency trader said referring to the multiple exchange rate.
The bank has been intervening aggressively since February to
try to narrow the spread between the official and black market
rates and has sold more than $4 billion.
Ghana's cedi is expected to remain firm against the
dollar next week on central bank support and positive market
sentiments that have led to improved interbank greenback
inflows, analysts said.
The unit was stable in the past month around 4.22 to the
dollar until Wednesday when a surge in corporate demand pushed
it down to 4.2450. It however rallied to 4.1983 by midday on
Thursday, and is down 0.6 percent since January.
"The cedi is expected to remain firm, with a possible rally,
as the regulator continues to implement steps necessary to
maintain a stable currency and boost investor confidence in the
economy," Accra-based Dortis Research analyst Joseph Biggles
The Ugandan shilling is seen trading in a stable
range in the coming days as commercial banks start to cool their
appetite for hard currency after building comfortable positions
in recent days.
At 0938 GMT commercial banks quoted the shilling at
3,630/3,640, weaker than last Thursday's close of 3,620/3,630.
A trader at a leading commercial bank said most banks had
taken positions from a recent wave of demand and are "likely to
see most stay on the (market) sidelines in the coming days."
He said the local currency would likely trade in the
The Tanzanian shilling is seen remaining in a similar
range to last week in the coming week, with scope for marginal
losses on the back of demand for dollars from oil and trading
Commercial banks quoted the shilling at 2,230/2,240 to the
dollar on Thursday, stronger than 2,235/2,245 a week ago.
"Demand for dollars from oil and trading sectors has picked
up over the past few days, but we expect the shilling to hold
steady in the days ahead or it could weaken slightly," a
Commercial Bank of Africa Tanzania trader said.
(Reporting by Chris Mfula, Kwasi Kpodo, Oludare Mayowa, John
Ndiso, Elias Biryabarema,; Writing by Tanisha Heiberg; Editing
by Louise Ireland)