African currencies week ahead: Kenya, Ghana currencies seen gaining, others steady

Kenya's shilling and Ghana's cedi were expected to strengthen next week, while several other currencies were likely to hold steady. But traders expected Zambia's kwacha to stay under pressure.
KENYA: The Kenyan shilling was expected to strengthen over next week, helped by subdued demand for dollars from importers. At 1110 GMT, commercial banks quoted the shilling a 100.50/100.70, stronger than last Thursday's 101.10/101.20 close. The shilling has already strengthened by 1.6 percent against the dollar so far this year.
"The shilling is likely to gain due to the low import bill," said a trader from a leading commercial bank.
GHANA: The cedi is expected to extend its rally against the dollar next week, supported by adequate dollar demand. At 1130 GMT, the cedi stood at 3.8050/3.8150 to the dollar, compared to 3.8200 a week ago. "The confidence in the cedi's performance over the past few months continues to grow," said Biggles Amponsah of Accra-based Dortis Research.
NIGERIA: Nigeria's naira is expected to remain steady at the official interbank window and on the parallel market, as businesses await the passing of the 2016 budget and as the economy slows.
The local currency was unchanged at 321 to the dollar on the parallel market on Thursday. It was trading around the official peg of 197 at interbank market. "Many businesses are patiently waiting for the resolution of the budget issue between the president and the lawmakers so that the economy could roar back to life again," one trader said.
TANZANIA: The Tanzanian shilling is expected to hold firm against the dollar, supported by flows of dollars that came in at the end of April from companies seeking to meet tax obligations and to pay salaries. Commercial banks quoted the shilling at 2,185/2,195 to the dollar on Thursday, unchanged from a week ago.
ZAMBIA: The kwacha is likely to remain under pressure next week due to a limited supply of dollars. By 1209 GMT, the currency was quoted at 9.6900/9.7100 to the dollar, compared with 9.6000 a week ago.
"With dollar liquidity being scarce, momentum remains on kwacha depreciation," the Zambian branch of South Africa's First National Bank (FNB) said in a note.
UGANDA: The Ugandan shilling is expected to hold firm next week, helped by the central bank's move to draw excess shilling liquidity from the market. At 1101 GMT commercial banks quoted the shilling at 3,330/3,340, weaker than last Thursday's close of 3,325/3,335.