November 29, 2018 / 11:18 AM / 14 days ago

WEEKAHEAD-AFRICA-FX-Zambia's currency seen range-bound, Uganda's to firm

NAIROBI, Nov 29 (Reuters) - Zambia’s currency is likely to remain range-bound in the coming week while Uganda’s is expected to firm and Kenya’s could come under pressure from importers.

ZAMBIA

The kwacha is expected to remain range-bound because of reduced demand for dollars towards the end of the year.

At 1020 GMT on Thursday commercial banks quoted the currency of Africa’s second-largest copper producer at 12.0250 per dollar from a close of 11.8500 a week ago.

“It should remain around current levels because most importers have already stocked up, limiting demand for dollars,” said independent financial analyst Maambo Hamaundu.

UGANDA

The Ugandan shilling is likely to firm over the next week on the back of receding appetite for hard currency from merchandise importers and inflows from non-governmental organisations (NGOs).

“By now most importers have already met all their foreign-exchange needs for holiday shoppers, so in December we typically see flat demand,” said a trader at a leading commercial bank.

However, charities, which receive most of their donations in hard currency, are expected to perform significant conversions to clear outstanding obligations for the year.

The shilling, the trader said, is likely to trade between 3,710-3,730 against the dollar next week.

At 1233 GMT commercial, banks quoted the shilling at 3,725/3,735, against last Thursday’s close of 3,715/3,725

KENYA

The Kenyan shilling is expected to come under pressure next week from oil and merchandise importers buying dollars to meet month-end obligations ahead of the holiday season, traders said.

Commercial banks quoted the shilling at 102.45/65 per dollar, unchanged from last Thursday’s close.

“Mostly it’s importers buying to meet future dollar needs during the holiday season,” said a senior trader from a commercial bank.

Reporting by Chris Mfula, Elias Biryabarema and John Ndiso; Compiled by Omar Mohammed; Editing by David Goodman

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