NAIROBI, May 14 (Reuters) – Ghana’s currency is expected to fall further against the dollar in the next week to Thursday, while those of Kenya, Nigeria and Uganda should be little changed and Zambia’s may strengthen, traders said.
GHANA
Ghana’s cedi is being dragged down by persistent corporate foreign-currency demand, particularly from the energy sector.
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LSEG data showed the cedi trading at 11.34 to the dollar, compared to 11.26 a week earlier.
“The cedi is likely to continue its steady slide … as FX backlogs persist,” one trader said.
“Corporate FX demand has remained firm, while mining sector FX inflows and central bank auction allocations have so far been insufficient to offset it,” the trader added.
KENYA
Kenya’s shilling is expected to hold steady, with importer dollar demand matched by inflows.
Commercial banks quoted the shilling at 128.95/129.25, compared with last Thursday’s close of 129.05/25.
“We expect it to remain stable,” a trader said.
NIGERIA
Nigeria’s naira is forecast to be broadly stable, supported by dollar sales by the central bank and higher oil receipts.
LSEG data showed the naira at 1,368 to the dollar in intraday trading on Thursday, compared with 1,356 a week earlier.
On the street market the currency traded around 1,400 to the dollar.
“What we’re seeing is the market settling into a balance, driven by the central bank’s interventions and also steady inflows from oil receipts,” a trader said.
UGANDA
Uganda’s shilling is seen little changed in the coming days after the central bank maintained its policy rate.
Commercial banks quoted the shilling at 3,735/3,745 to the U.S. dollar, compared to last Thursday’s close of 3,750/3,760
“After the central bank chose to extend a neutral stance I think the unit will maintain a broadly stable range,” a trader said.
ZAMBIA
Zambia’s kwacha could advance against the dollar due to strong foreign-currency inflows from the mining sector and foreign financial institutions.
On Thursday the kwacha was quoted at 18.98 per dollar from 19.19 a week ago.
Reporting by Christian Akorlie, George Obulutsa, Elisha Bala-Gbogbo, Elias Biryabarema and Chris Mfula
