NAIROBI, June 1 The Nigerian naira is expected
to be stable in the coming week while the Zambian kwacha could
come under pressure.
The Nigerian naira is seen stable across the board in the
near term on increased dollar supply to both the official
interbank window and the black market.
It has been trading around 382 to the dollar on the black
market in the last two weeks, while at the interbank market the
naira was trading at around 305.40 per dollar.
The central bank has been intervening on the official market
to try to narrow the spread between the official interbank and
black markets. It has sold over $4 billion since February,
improving dollar supply and providing support for the naira.
The Kenyan shilling could gain ground against the
dollar in the coming week with dwindling end month importer
demand giving way to foreign exchange inflows from charities and
exporters, traders said.
At 0850 GMT on Wednesday, commercial banks quoted the
shilling at 103.35/45 per dollar, compared with 103.25/45 at
last Thursday's close. Thursday was a public holiday.
"End of month demand is taking it's course, I expect it to
gain maybe slightly," said a trader from a commercial bank.
The Zambian kwacha is likely to come under pressure
in the coming week due to increasing demand for dollars from
importers at the start of the new month.
At 0740 GMT on Thursday, commercial banks quoted the
currency at 9.2500 per dollar, stronger than 9.3300 a week ago.
"Dollar supply continues to wane while demand persists.
Higher levels will attract exporters to provide resistance," one
senior commercial bank trader said.
The Ugandan shilling is seen posting marginal gains
in the coming week, boosted by flagging appetite for hard
currency as commercial banks stay on the sidelines ahead of
2017/18 fiscal year budget reading.
At 1100 GMT, commercial banks quoted the shilling on
3,590/3,600, stronger than last Thursday's close of 3,600/3,610.
"In the days ahead of the budget players tend to go slow on
taking positions and this is what we're likely to see," said a
trader at a leading commercial bank.
The budget for the next July-June fiscal year is due to be
read on June 8.
Ghana's cedi is seen stable next week on expected offshore
portfolio inflows on the heels of a three-year local bond and
central bank dollar sales, traders said.
The local unit, which has been fairly stable most part of
the year, weakened 2.8 percent in the month of May on a
mid-month corporate dollar demand surge. It was trading at
4.3275 to the greenback by mid-morning on Thursday, compared
with 4.3200 a month ago.
"We see a bullish outlook for the cedi in the days ahead as
we expect portfolio inflows and central bank support to offer
the currency some stability," analyst Joseph Biggles Amponsah of
Accra-based Dortis Research said.
The Tanzanian shilling could come under pressure in
the coming days due to demand for hard currency from the oil
Commercial banks quoted the shilling at 2,238/2,243 to the
dollar on Thursday from 2,234/2,244 a week ago.
"There is pressure on the local currency coming from the oil
sector, despite month-end dollar inflows from corporates. The
shilling could trade in a tight range next week," said a trader
at CRDB Bank.
(Reporting by Oludare Mayowa, John Ndiso, Chris Mfula, Elias
Biryabarema, Kwasi Kpodo and Fumbuka Ng'wanakilala Editing by