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WEEKAHEAD-AFRICA-FX- Kenyan shilling seen weak on increased oil import demand
May 25, 2017 / 3:25 PM / 4 months ago

WEEKAHEAD-AFRICA-FX- Kenyan shilling seen weak on increased oil import demand

NAIROBI, May 25 (Reuters) - Traders expect the Kenyan shilling to weaken next week, with increased oil importer demand outweighing dollar inflows, while Tanzanian shilling is seen remaining firm due to subdued demand for greenbacks.

KENYA

The Kenyan shilling could weaken in the coming week due to up pick in end month demand from oil importers as market players eye a central bank monetary policy meeting on Monday, traders said.

At 1342 GMT, commercial banks quoted the shilling at 103.25/45, compared with 103.30/50 at last Thursday’s close.

“We have seen slight demand from oil importers... the market is looking at Monday’s meeting,” said a trader from a commercial bank.

TANZANIA

The Tanzanian shilling is expected to remain firm in the coming days, helped by subdued demand for greenbacks from importers.

Commercial banks quoted the shilling at 2,234/2,244 to the dollar on Thursday, barely moved from 2,235/2,245 a week ago.

“The market has been very quiet over the past several weeks... the shilling will likely remain stable in the same levels next week,” said a trader at Commercial Bank of Africa Tanzania.

NIGERIA

The Nigerian naira is seen trading within a range on both the black market and official interbank window as the central bank continue to inject more dollars to boost liquidity in the foreign exchange market.

The central bank has consistently intervened in the foreign exchange market since February and has sold more than $4 billion to various sectors of the economy, this has improved liquidity and helped to ease pressure on the naira.

The naira was quoted at 379.07 per dollar at the investor window on Thursday, according to the market regulator FMDQ OTC Securities Exchange, while it traded flat at 380 to the dollar on the black market.

Commercial lenders were yet to put up a quote on the official interbank market, but the naira closed at 305.90 a dollar on Wednesday on the market.

UGANDA

The Ugandan shilling is seen trading with a firming tone as slumping demand from importers forces commercial banks to trim their hard currency positions.

At 1001 GMT commercial banks quoted the shilling at 3,600/3,610, stronger than last Thursday’s close of 3,620/3,630.

“As demand dries up we expect significant interbank driven activity on the supply side,” said a trader from a leading commercial bank. (Reporting by John Ndiso in Nairobi, Elias Biryabarema in Kampala, Fumbuka Ng‘wanakilala in Dar es Salaam and Oludare Mayowa in Lagos; Compiled by Nqobile Dludla, editing by Pritha Sarkar)

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