WEEKAHEAD-AFRICA-FX-Kenyan shilling seen softening, other African currencies stable

PUBLISHED: Thu, 15 Jul 2021 12:10:29 GMT
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NAIROBI, July 15 (Reuters) – Kenya’s currency is likely to come under pressure against the U.S. dollar next week while Nigeria, Tanzania, Uganda and Zambia’s units hold steady.

KENYA

The Kenyan shilling is expected to come under pressure in the coming week as demand for dollars increases in the market.

Commercial banks quoted the shilling at 108.05/108.25, compared with last Thursday’s close 107.85/108.05.

“I expect the demand (for dollars) to go up in the next week,” said a trader at one of the commercial banks.

NIGERIA

Nigeria’s naira is seen unchanged on the official and parallel markets next week due to a forthcoming bank holiday and thin liquidity, traders said.

The currency was quoted at 411 naira on the spot market on Thursday, to stay within a range of between 407 naira and 412 naira it has traded at since last month.

It remained unchanged on the black market at the more than 3-1/2-year low of 505 naira hit last week on the informal market.

TANZANIA

Tanzania’s shilling is expected to hold steady as dollar inflows from daily corporate operations and retail companies match demand.

Commercial banks quoted the shilling at 2,314/2,324 against the dollar, unchanged from last Thursday’s close.

“We expect the demand and inflows to come from the daily operations of corporates and retail businesses,” a trader at one commercial bank in Dar es Salaam said.

UGANDA

The Ugandan shilling is expected to be stable, with inflows from exporters of commodities like coffee helping absorb appetite from merchandise importers.

Commercial banks quoted the shilling at 3,545/3,555, compared with last Thursday’s close of 3,550/3,560.

“We have healthy inflows from commodities like coffee, they will mop up any importer demand coming through,” said a trader at one commercial bank, who expected it to trade in the 3,540-3,560 range in the next week.

ZAMBIA

The kwacha is likely to hold steady against the dollar next week as the market continues to see some moderate hard currency supply and matching demand.

On Thursday, commercial banks quoted the currency of Africa’s second largest copper producer at 22.6350 per dollar from 22.6200 at the close of business a week ago.

“Interim trends suggest that the rate is likely to trade between 22.650 to 22.850 in the short to medium term,” pan-African commercial bank Access Bank said in a note. (Reporting by Omar Mohammed, Chijioke Ohuocha, Nuzulack Dausen, Elias Biryabarema and Chris Mfula; Compiled by Chris Mfula; Editing by XXX XXX)

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