The new naira notes
The currencies of Ghana, Nigeria and Uganda are expected to fall against the dollar in the next week to Thursday, while those of Kenya and Zambia should be broadly stable, traders said.
GHANA
Ghana’s cedi is expected to stay under pressure as persistent corporate dollar demand outpaces supply.
LSEG data showed the cedi trading at 11.61 to the dollar on Thursday, compared to 11.50 a week earlier.
“We’ve seen increased FX demand from local corporate accounts, particularly within the energy and commerce sectors,” said Andrews Akoto, head of trading at Absa Bank Ghana.
“With bids outstripping supply by over 3.5 times at Tuesday’s central bank FX auction, the cedi is likely to remain under pressure,” he added.
NIGERIA
Nigeria’s naira is seen weakening, largely due to foreign-currency buying from fuel importers.
The currency was quoted at 1,368 to the dollar on the official market on Thursday, compared with 1,383 a week ago.
The unit was changing hands at 1,420 to the dollar in street trading .
“We expect the naira to come under pressure, with downside risks skewed toward a depreciation as fuel importers front-load dollar purchases to build inventories,” one trader said.
UGANDA
Uganda’s shilling is forecast to extend recent losses as renewed fighting in the Middle East drives up global crude oil prices.
Commercial banks quoted the shilling at 3,735/3,745 to the dollar compared with last Thursday’s close of 3,685/3,695.
“The shilling has taken losses in recent days because of the dynamics in the global energy markets, we anticipate additional losses in the short term unless the geopolitical situation in the Middle East eases,” a trader said, adding the shilling would likely weaken to around 3,750 in the coming week.
ZAMBIA
Zambia’s kwacha is likely to remain relatively steady, supported by strong copper prices.
On Thursday commercial banks quoted the currency of Africa’s second-largest copper producer at 18.54 per dollar from 18.44 a week ago.
“Copper prices are likely to hold firm in the near term, and this should give support to the local currency,” one financial analyst said.
KENYA
Kenya’s shilling is expected be extend a long-running stable trend.
Commercial banks traded the shilling at 129.40/60 per dollar, the same level as last Thursday’s close.
REUTERS
