The new naira notes
The currencies of Ghana, Nigeria and Uganda are expected to remain under pressure in the next week to Thursday, and those of Kenya and Zambia broadly steady, traders said.
GHANA
Ghana’s cedi should be on the back foot due to unmet corporate dollar demand on the interbank market, particularly from oil importers.
LSEG data showed the cedi trading at 11.53 to the dollar on Thursday, compared to 11.40 a week earlier.
“The dollar is likely to strengthen against the local currency in the coming week as energy-sector FX demand firms alongside rebounding crude oil prices,” said Andrews Akoto, head of trading at Absa Bank Ghana.
“The last central bank FX auction held on Tuesday attracted bids of $311 million against an offer of $110 million, indicating that some unmet demand persists,” he added.
NIGERIA
Nigeria’s naira could weaken after the Dangote Petroleum Refinery this week started pricing local fuel sales in dollars, boosting demand for hard-currency.
The naira was quoted at 1,383 to the U.S. currency on the official market on Thursday, slightly weaker than 1,379 a week earlier.
The currency was changing hands at 1,425 to the dollar in street trading .
“We have seen the naira depreciate this week. I expect the pressure to continue unless events change in the global space to improve risk appetite,” one trader said.
UGANDA
Uganda’s shilling is seen weakening as dollar demand recovers after large firms clear their mid-month tax obligations.
Commercial banks quoted the shilling at 3,685/3,695 to the dollar, compared to last Thursday’s close of 3,680/3,690.
“Around mid-month these (tax) obligations put a squeeze on demand but going into next week we should see a rebound in appetite and a bit of pressure on the local unit,” a trader said.
KENYA
Kenya’s shilling is expected to remain stable, with demand and supply evenly matched.
Commercial banks traded the shilling at 129.25/45 per dollar, compared with last Thursday’s close of 129.15/35.
Traders said the central bank had intervened on the currency market by buying dollars towards the end of last week.
ZAMBIA
Zambia’s kwacha is likely to hold steady in the lead-up to a treasury bill auction on July 23.
Commercial banks quoted the kwacha at 18.44 per dollar from 18.31 a week ago.
“Despite rising demand for dollars, the kwacha should get support from the treasury bill auction,” a financial analyst said.
REUTERS
