Abuja — Nigeria’s currency is expected to strengthen further against the dollar in the next week to Thursday, while those of Kenya, Ghana, Uganda and Zambia should be little changed, traders said.
NIGERIA
Nigeria’s naira could extend its recent gains, lifted by strong forex inflows and central bank dollar sales to bureau de changes (BDCs), which have helped tighten the spread between official and parallel market exchange rates.
The naira was quoted at 1,344 to the dollar on the official market on Thursday, compared with 1,357 a week ago.
The unit was changing hands at 1,385 to the dollar in street trading on Thursday.
“We expect the naira to remain strong in the coming week, boosted by improved foreign exchange inflows and dollar sales to BDCs that (are) helping to further deflate the parallel market premium,” one trader said.
KENYA
Kenya’s shilling is expected to extend its long-running stable trend.
Commercial banks quoted the shilling at 128.80/129.10 to the U.S. currency, compared with last Thursday’s close of 128.90/129.20.
GHANA
Ghana’s cedi is likely to be broadly unchanged as corporate dollar demand has slowed.
LSEG data showed the cedi trading at 10.95 to the dollar compared with 10.99 a week ago.
“The currency is likely to remain range-bound in the week ahead, supported by improved interbank liquidity and softer corporate demand,” said Bertrand Baazeng, a trader with Absa Bank Ghana.
Ronald Mensah, a trader at Stanbic Bank Ghana, said: “Range-bound trading is likely to persist barring any significant external shocks.”
UGANDA
Uganda’s shilling is seen trading around its current levels, supported by dollar inflows from charities and commodity exporters.
Commercial banks quoted the shilling at 3,575/3,585 to the dollar, compared to last Thursday’s close of 3,535/3,545.
“We normally see an uptick in (dollar) flows as we move toward end of the month, mainly from NGOs and some commodity exporters,” a trader said.
ZAMBIA
Zambia’s kwacha is likely to remain steady due to improving economic conditions and investor sentiment.
Commercial banks quoted the currency of Africa’s second-largest copper producer at 19.08 per dollar on Thursday from 19.04 a week ago.
“We continue to remain optimistic on the currency,” Ebury senior market analyst Roman Ziruk said in a report on the kwacha’s outlook for this year.
*Elisha Bala-Gbogbo, George Obulutsa, Christian Akorlie, Elias Biryabarema & Chris Mfula; editing: Alexander Winning – Reuters
