Accra — Ghana’s currency is seen rising further in the coming week to Thursday, while Nigeria’s and Uganda’s could be broadly steady and Zambia’s may drop, traders said.
GHANA
Ghana’s cedi is expected to extend its recent gains, bolstered by sustained central bank support and offshore inflows.
LSEG data showed the cedi trading at 13.20 to the dollar on Thursday, compared to 14.00 at last Thursday’s close.
“The cedi has rallied considerably in recent weeks on the back of strong FX supply, largely from the central bank, which continues to provide ample support to the local market,” said Sedem Dornoo, a senior trader at Absa Bank Ghana.
“We expect the rally to continue in the coming week, likely falling below the 13.00-cedi psychological level,” he added.
Another trader said: “The current robust supply of dollars bodes well for the cedi.”
NIGERIA
Nigeria’s naira is seen holding steady in the coming week as regular central bank interventions provide liquidity.
The naira was quoted around 1,607 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,605 naira a week earlier.
The unit was sold at 1,606 naira to the dollar in street trading on Thursday.
“I expect the coming week to trade between 1,600 and 1,615 levels,” a trader said.
“The central bank has sold funds at around 1,600 naira. What we can deduce is that the central bank … is comfortable with those levels,” the trader added.
UGANDA
Uganda’s shilling is seen trading stable, helped by muted hard-currency appetite from importers.
Commercial banks quoted the shilling at 3,655/3,665 to the dollar, unchanged from last Thursday’s close.
“(FX) appetite is very low across the board, but also inflows are modest. … I don’t expect it (shilling) to break out of its recent range,” a trader said.
He said the local unit was likely to swing in the 3,645-3,675 to the dollar range in the days ahead.
ZAMBIA
Zambia’s kwacha is likely to marginally fall next week, snapping a winning streak.
On Thursday the currency was quoted at 26.50 from 27.80 a week ago.
Zambia National Commercial Bank said in a note that the local currency had traded stronger this week as dollar buyers stayed out of the market in anticipation of more favourable exchange rates.
“We expect the kwacha to change course towards weakening as previously hibernating demand tickets resurface,” the bank said.
*Christian Akorlie, Chijioke Ohuocha, Elias Biryabarema and Chris Mfula; editing: Alexander Winning – Reuters
