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WEEKAHEAD-AFRICA-FX- Kenya, Ghana, Zambia currencies seen firmer, Nigeria's to ease
April 6, 2017 / 12:00 PM / 8 months ago

WEEKAHEAD-AFRICA-FX- Kenya, Ghana, Zambia currencies seen firmer, Nigeria's to ease

    NAIROBI, April 6 (Reuters) - Kenya's shilling, Zambia's
kwacha and Ghana's cedi are seen strengthening against the
dollar in the next week to Thursday, while the Nigerian naira is
seen weakening, traders said.
    The Kenyan shilling        could strengthen in the week
ahead due to foreign exchange inflows from charities and
horticulture exporters outweighing subsiding dollar demand from
oil importers , traders said. 
    Commercial banks quoted the shilling at 103.20/40 per
dollar, compared with 102.95/103.05 at last Thursday's close.
    "Once the oil importer demand is out of the way, we should
see the shilling regain some ground," said a trader from a
commercial bank. 
   The Uganda shilling        is seen weakening moderately in
the coming days, as anticipated government spending triggers an
uptick in demand for hard currency.
    Commercial banks quoted the shilling at 3,605/3,615, little
changed from last Thursday's close of 3,610/3,620. 
    "If those (government) funds come through, we might see some
dollar purchases," David Bagambe, a trader at Diamond Trust Bank
Uganda, said.
    The Tanzanian shilling        is expected to remain
range-bound in the coming days due to relatively slow trading
    Commercial banks quoted the shilling at 2,233/2,238 to the
dollar on Thursday, unchanged from a week ago.
    "The outlook for next week is that of stability ... we do
not expect any big movement of the local currency due to the
prevailing subdued market conditions," said a trader at a
commercial bank in Dar es Salaam.
    Ghana’s cedi        is seen extending its rally against
sustained dollar inflows from offshore investors buying
long-dated local securities, analysts said.
    After touching record lows of 4.7420 to the dollar early
this month, the cedi has steadily recouped, rallying to 4.2100
by mid-morning on Thursday compared to 4.3700 a week ago. It is
down 0.37 percent since January, according to Reuters data.
   "The resultant inflows and growing confidence in the economy
is likely to extend the cedi's gains recorded in the last four
weeks." Joseph Biggles Amponsah, analyst at the Accra-based
Dortis Research said.
    Nigerian naira          is seen weakening further on the
black market even as the central bank moves to improve hard
currency liquidity in both the parallel and official interbank
windows yield little results.
    The local currency was quoted at 398 to the dollar on the
black market on Thursday, compared with 380 per dollar last
week, while commercial lenders are yet to put up any quote as
11.11 GMT. The local currency however closed at the official
window at 306.20 to the dollar.
    Traders said in spite of the improvement in dollar supply to
the bureaux, demand pressure has increased due to speculators
betting that the naira would still depreciate further in the
coming weeks.
    The Kwacha        is expected to maintain its bullish run
against the US dollar next week supported by hard currency flows
from companies looking to meet their mid-month tax obligations.
    Commercial banks quoted the currency of Africa's No.2 copper
producer at 9.4500 per dollar from a close of 9.5700  per dollar
a week ago.
    "The local unit is expected to stand tall in the interim,"
the Zambian branch of Atlas Mara, BancABC said in a market note.

 (Reporting by Fumbuka Ng'wanakilala, Elias Biryabarema, John
Ndiso,Kwasi Kpodo, Chris Mfula and Oludare Mayowa; Compiled by
George Obulutsa  Editing by Jeremy Gaunt)

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