Kenya's shilling, Nigeria's naira and Zambia's kwacha are expected to weaken further in the week to next Thursday, while Ghana's cedi and Uganda's shilling could strengthen, traders said.
KENYA
Kenya's shilling is expected to weaken further in the coming
week, driven by demand for dollars from the manufacturing and energy sectors.
Commercial banks quoted the shilling at 141.70/90 per
dollar, a record low, according to Refinitiv data, and compared with last
Thursday's closing rate of 141.30/50.
"It just continues to weaken. We have (demand) from oil
(retailing companies) and manufacturing," a trader at one commercial bank
said.
NIGERIA
Nigeria's naira will likely weaken slightly in the coming
week as liquidity shortage in the official window persists even after the
central bank removed restrictions on the exchange rate market, traders said.
The naira hit a low of 831 against the dollar on the
official market on Tuesday, edging closer to the 840 reported by the FMDQ
Exchange late last month. It is currently weaker on the black market at 860
naira.
"A lot of participants in the official window have not
been able to fill their orders, and are turning to the black market," one
trader said.
ZAMBIA
Zambia's kwacha is likely to continue trading weaker against
the dollar next week as hard currency remains scarce amidst high demand from
energy sector importers.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 19.4600 per dollar, down from
18.7000 a week ago.
"The local currency is expected to decline in value in
the short run," Access Bank (ACCESS.GH) said in a note.
GHANA
Ghana's cedi is expected to strengthen against the dollar
next week due to muted corporate demand for forex and remittance inflows,
traders said.
Refinitiv Eikon data showed the cedi trading at 11.5000 to
the dollar on Thursday, compared to 11.0000 at last Thursday's close.
"The cedi has been on the front foot in recent
sessions, mainly on the back of improved remittance flows on the market,"
said Sedem Dornoo, a senior trader at Absa Bank Ghana.
"We expect the local unit to continue to strengthen in
the coming sessions, especially given current lacklustre FX demand," he
added.
Other traders also said low demand for dollars would likely
keep the currency steady or boost it over the coming week.
UGANDA
Uganda's shilling is expected to post gains on the back of
inflows from non-governmental organisations converting their dollar holdings to
meet month-end obligations.
Commercial banks quoted the shilling at 3,640/3,650, compared
with last Thursday's closing rate of 3,665/3,675.
"Some (dollar) inflows from charities are expected as
we head into the last week of the month," said one independent foreign
exchange trader in the capital Kampala.
NGOs that receive donations in hard currency convert some of
it to pay salaries and other operational expenses at the end of each month.
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