JOHANNESBURG: Africa’s major currencies are set to experience a mixed trade next week as worries over economic activity and debt sustainability offset largely risk-on global sentiment.
NIGERIA — The naira is seen flat in the coming week, as the central bank turns the spotlight to exporters to try to boost foreign exchange liquidity after it eased rules on diaspora remittances last month, traders said.
The naira was quoted at 478 per dollar on the black market, a level it traded on Thursday and Wednesday, compared with 394.33 naira on the over-the-counter spot market. The currency has been under pressure on the black market, where it trades more freely, widening the gap with the official rate. The central bank plans to bar exporters who fail to remit dollar proceeds from banking services.
TANZANIA — Tanzania’s shilling is expected to hold steady next week as inflows from mining and agricultural exports match the demand for the US dollar from energy and manufacturing importers. Commercial banks quoted the shilling at 2,314/2,324 on Thursday, unchanged from the last week’s close.
KENYA — The Kenyan shilling is expected to remain stable, helped by low dollar demand as cash flows are expect to be matched. At 0715 GMT, commercial banks posted the shilling stronger at 109.75/95 versus 109.70/90 last Thursday.
UGANDA — The Ugandan shilling is seen trading in a stable range in the coming days as players await key economic data before taking big positions. At 1025 GMT commercial banks quoted the shilling at 3,685/3,695, compared to last Thursday’s close of 3,680/3,690. The statistics office is expected to release this month’s consumer price index data on Friday while the central bank is also due to announce its latest policy rate.
ZAMBIA — Zambia’s kwacha currency is set to remain on the back foot in the coming week, as the country’s struggle to service its sovereign debt remains a drag on sentiment despite supportive copper prices globally. On Thursday, commercial banks quoted the currency of Africa’s second largest copper producer at 21.3800 per dollar, down from a close of 21.2350 a week ago.
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