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WEEKAHEAD-AFRICA-FX- Ghana cedi, Zambia kwacha seen weaker;
May 18, 2017 / 12:33 PM / 6 months ago

WEEKAHEAD-AFRICA-FX- Ghana cedi, Zambia kwacha seen weaker;

    NAIROBI, May 18 (Reuters) - Ghana's cedi and Zambia's kwacha
are seen weakening in the next week to Thursday, while Kenya and
Tanzania shillings are expected to hold steady, traders said.
    The shilling        is seen holding steady, supported by
dollar inflows from tea exporters  and subdued demand from oil
importers, traders said.
    Commercial banks quoted the shilling at 103.20/40 to the
dollar, compared with 103.40/50 at last Thursday's close. 
    "This week they sold dollars into the market and they should
also be there next week," said a trader from a commercial bank
referring to dollar sales from a tea exporter.
    The Tanzanian shilling        is seen stable as importers
cool their appetite for dollars due to a slowdown in business
    Commercial banks quoted the shilling at 2,235/2,245 to the
dollar on Thursday, weaker than 2,230/2,240 a week ago.
    "U.S. dollars have become a bit scarce in the market right
now following a decline in supply, but there isn't any huge
demand for greenbacks ... so we expect the shilling to trade in
the same levels next week," said a trader at Commercial Bank of
Africa Tanzania.
    The Ugandan shilling        is seen gaining ground, helped
by tight liquidity and muted dollar demand from commercial
    Commercial banks quoted the shilling at 3,617/3,627,
stronger than last Thursday's close of 3,632/3,642. 
    The central Bank of Uganda on Thursday removed over a
trillion Ugandan shillings ($276.55 million) from the interbank
market via a seven-day repo and two deposit auctions of longer
     A trader at a leading commercial bank said the mop up
combined with this week's tax payments would "keep appetite for
the dollar on the lower side."
    The naira          is seen trading within a narrow range on
the back of central bank injection of dollars to improve
liquidity and narrow the spread between official and black
market rate.
    It was quoted at 306.10 to the dollar on the official
interbank market, from 305.60 last week. It was quoted at 385
per dollar on the black market, firmer than 390 a dollar a week
     It was quoted at 382 per dollar at the investor's window
where they could trade foreign exchange at rates set by buyers
and sellers, according to the market regulator FMDQ OTC
Securities Exchange.
    "We see naira trading within the prevailing rate as the
central bank sustains its dollar sales in the coming week," one
senior currency trader said.
    Ghana's cedi        could remain under pressure mainly on
surging dollar demand by foreign investors and local businesses 
despite weekly greenback sales by the central bank, analysts
    The local unit had been firm through the end of April until
last week when it began to weaken. It was trading at 4.2392 to
the dollar by midday on Thursday compared to 4.1983 a week ago.
    "A deepening of the central bank's intervention is necessary
to keep the cedi under 4.4000 in order not to trigger any form
of panic-buying," Joseph Biggles Amponsah of the Accra-based
Dortis Research said.
    The kwacha        is likely to trade on the back foot
against the U.S. dollar next week due to rising demand for hard
currency from importers.
    Commercial banks quoted the kwacha at 9.2700 per dollar,
slightly softer than a close of 9.1750 a week earlier.
    "After a good run, the kwacha is coming under some pressure
from growing demand for dollars from importers. Resistance level
is seen at 9.400," one senior commercial bank trader said.

 (Reporting by John Ndiso, Elias Biryabarema, Fumbuka
Ng'wanakilala, Kwasi Kpodo and Oludare Mayowa; Compiled by
George Obulutsa, editing by Pritha Sarkar)

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