The Zambian kwacha is expected to weaken further in the week ahead due to a slowdown in China, a key importer of its commodities, as well as electricity outages.
ZAMBIA: Traders predict the Zambian kwacha will remain under pressure next week on concerns about an electricity shortage that has hit Africa's No 2 copper producer and slow growth in China.
On Thursday the kwacha was bid at 10.5750, weaker than last week's close of 10.0300. The kwacha has broken through a series of record lows this year, weakening by close to 40 percent according to Reuters data.
"The power deficit and as such the higher cost of production poses a threat to the kwacha. The slowing Chinese economy and its obvious impact on copper has continued to have a negative impact on the unit," the local unit of South Africa's First National Bank (FNB) said in a note on Thursday.
KENYA: Kenya's shilling is seen holding steady, with importer dollar demand being balanced out by tight shilling liquidity, traders said.
Commercial banks quoted the shilling at 105.50/70 to the dollar, compared with last Thursday's close of 105.55/106.65.
"What is really supporting it is still the liquidity. If they (central bank) continue with the aggressive tightening, it will be very expensive to fund long (dollar) positions," said a senior trader at one commercial bank.
UGANDA: The Ugandan shilling is forecast to trade with a weakening bias over the next several days, undermined by an uptick in corporate demand although inflows from private aid agencies may limit losses.
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