The new naira notes
October 16, 2025
Nigeria’s naira is expected to depreciate further next week as foreign investors sell local assets amid global risk aversion and limited dollar supply, while Ghana’s cedi will extend its recent rally against the dollar.
NIGERIA
The naira could depreciate as foreign investors sell local assets owing to a global risk-off mood caused by escalating trade tensions between the world’s two biggest economies and weak dollar supply by the central bank, traders said.
The naira was quoted at 1,475 naira to the dollar on the official market on Thursday, traders showed, compared with a closing quote of 1,455 naira a week earlier.
The currency was changing hands at 1,495 naira to the dollar in street trading on Thursday.
“We have seen further depreciation (in the naira) this week. This is coming from recent escalation of trade tension between the U.S. and China,” one trader said, adding that some investors were exiting.
“Until we have clarity, we will see a bit of demand for FX and that will push rates up.”
GHANA
Ghana’s cedi is expected to extend its recent rally against the dollar, supported by sustained FX inflows and continued central bank intervention.
London Stock Exchange Group data showed the cedi trading at 10.90 to the dollar on Thursday, compared to 12.30 at last Thursday’s close.
“The currency is likely to remain range-bound in the week ahead, supported by improved interbank liquidity following the new central bank auction approach,” said Andrews Akoto, head of trading at Absa Bank Ghana.
“While FX demand from the energy, services, and manufacturing sectors is expected to linger, the total uptake of only 39% at the most recent $150 million central bank auction held on Tuesday indicates that demand has softened,” he added.
Another trader said the bid-offer spread had tightened considerably on the back of mining sector FX inflows and central bank’s sustained market support.
KENYA
Kenya’s shilling is expected to be stable in the next week. Commercial banks quoted the shilling 128.95/129.35 per dollar, the same as last Thursday’s close.
The central bank says the shilling’s steadiness is due to dollar inflows from remittances, horticulture and tea exports and confidence in the economy.
UGANDA
The Ugandan shilling is seen trading with a weakening bias in the coming days as an uptick in hard currency demand from interbank players and merchandise importers exerts pressure on the local unit, traders said.
Some interbank players are replenishing their oversold dollar positions after a months-long bullish run for the local unit while also importers are picking up dollars to pay for extra merchandise shipments for December holiday shoppers, one trader at a commercial bank said.
“Those two dynamics will likely keep the shilling on overall weaker footing,” he said.
ZAMBIA
The kwacha is likely to continue trading on the front foot against the dollar next week supported by improved hard currency supply.
On Thursday commercial banks quoted the currency of Africa’s second largest copper producer at 23.06 per dollar from 23.18 a week ago.
“The kwacha has been underpinned by signs of stability in Zambia’s mining output and improved dollar inflows from copper exports, which have been buoyed by stronger global demand and firmer prices,” Access Bank said in a note.
REUTERS
