NAIROBI: The Tanzanian and Ugandan shillings are expected to weaken in the week to Thursday, while the Zambian kwacha is expected to gain, traders said.
KENYA
Kenya's shilling is expected to hold steady, with dollar demand from importers and manufacturing companies expected to be countered by prospects of the central bank selling the US currency.
At 1201 GMT, commercial banks quoted the shilling at 100.65/75 to the dollar, compared with last Thursday's close of 100.45/65.
UGANDA
The Ugandan shilling is forecast to weaken, sapped by a pick-up in dollar purchases by corporate firms in energy sector and banks.
At 1031 GMT commercial banks quoted the shilling at 3,350/3,360, weaker than last Thursday's closing of 3,320/3,330.
TANZANIA
The Tanzanian shilling could come under pressure in the days ahead, weighed down by a slowdown in dollar inflows and demand for the US currency from oil and manufacturing sectors.
Commercial banks quoted the shilling at 2,187/2,197 to the dollar on Thursday, weaker than 2,185/2,195 a week ago.
"The shilling is expected to be under continued pressure next week because we are seeing more demand for dollars in the market compared to the available supply, but this pressure is expected to ease towards the end of the month," Moses Kawiche, a trader at CRDB Bank, said.
ZAMBIA
The kwacha may gain against the greenback next week due to dollar conversions by exporters preparing to pay salaries and other month-end obligations.
"We are likely to see exporters in the market converting dollars next week because they have to make month-end payments in kwacha," one commercial bank trader said.
The currency of Africa's second-largest copper producer traded at 10.2100/10.2300 per dollar compared with 9.9650 last Thursday.
NIGERIA
Nigeria's naira is expected to take a cue from the outcome of a rate-setting meeting by the Monetary Policy Committee (MPC) on Tuesday.
The naira was quoted at 340 to the dollar on Thursday at the parallel market, weaker than 324 to the dollar last Thursday. At the official interbank, the naira was trading around the 197 peg.
"Many people are waiting for the next move by the central bank on the currency, even though it has denied plans to devalue the naira but people are still expecting the bank to announce a new exchange rate policy soon," one trader said.
GHANA
Ghana's cedi could shed some of its recent gains in the week ahead on a sudden rebound of corporate dollar demand without a matching supply, analysts said.
The cedi, which has rallied to a year high this month on sustained forex inflows, gave up some of its gains this week on unmatched dollar demand by local firms. It traded at 3.8375 to the dollar at 1100 GMT on Thursday, down from 3.8150 a week ago.
"In the week ahead, the cedi is expected to further trade down within the 3.8400 and 3.8450 levels as demand for the greenback strengthens in the face of thin liquidity," Joseph Biggles Amponsah of the Accra-based Dortis research said.
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