Abuja — The Nigerian, Ghanaian and Kenyan currencies are expected to be steady against the dollar in the next week to Thursday, while Uganda’s may gain and Zambia’s could slip, traders said.
NIGERIA
Nigeria’s naira should be stable, supported by central bank interventions in the face of steady dollar demand.
The naira was quoted at 1,445 to the U.S. dollar on the official market on Thursday, compared with 1,447 a week earlier.
The currency was changing hands at 1,475 to the dollar in street trading.
“I expect the naira to trade within a band of 1,443-1,450 naira next week,” one trader said.
“I don’t expect any drastic move from where it is. We have seen demand, but (the) central bank has been intervening.”
GHANA
Ghana’s cedi is seen staying around current levels, with dollar demand slowing down as most companies wrap up their activity for the year.
LSEG data showed the cedi trading at 11.35 to the dollar, compared with a close of 11.20 last Thursday.
“The usual year-end slowdown in foreign-exchange demand is approaching. … As activity tapers off over the festive period, we expect the currency to catch a bit of a breather in the coming weeks,” said Ronald Mensah, a trader at Stanbic Bank Ghana.
KENYA
Kenya’s shilling is forecast to be little changed, as it has been for more than a year.
Commercial banks quoted the shilling at 129.30/129.50 to the dollar, compared to last Thursday’s close of 129.60/129.90.
“We’ll see some activity as players prepare to close their books for the year, but the current level will likely hold,” a trader said.
UGANDA
Uganda’s shilling may strengthen, boosted by weak appetite for hard currency and inflows from remittances.
Banks quoted the shilling at 3,540/3,550 to the dollar, compared to last Thursday’s close of 3,620/3,630.
“Typically in December we tend to see a downward trend in appetite, while on the other hand we have diaspora inflows,” a trader said.
ZAMBIA
Zambia’s kwacha may come under mild pressure due to rising demand for hard currency, driven by festive season imports.
The kwacha was quoted at 23.16 per dollar from 23.12 a week ago.
“Given the typical year-end demand for hard currency, the Zambian kwacha could struggle,” Access Bank said in a note.
*Chijioke Ohuocha, Christian Akorlie, Elias Biryabarema & Chris Mfula; editing: Alexander Winning – Reuters
