African currencies week ahead: Nigeria's naira seen broadly stable if polls pass peacefully

Nigeria's naira is seen trading stable if upcoming elections pass off peacefully, while hard currency inflows from offshore investors are seen supporting Kenyan and Ugandan shillings.
NIGERIA - The Nigerian naira could be broadly stable over the next one week assuming a presidential election due on Saturday passes free of violence and other problems, traders said. Traders say foreign funds have shrugged off the risk from the forthcoming elections to buy Nigerian assets, boosting hard currency liquidity on the over-the-counter currency market for investors.
The naira eased slightly to 362 on the parallel market on Thursday but held steady at last week's level of 361 per dollar on the over-the-counter market for investors. It was quoted at 306.75 on the official market, supported by the central bank.
UGANDA - The Ugandan shilling is seen trading with a firming tone, as expected hard currency inflows from offshore investors help provide support for the local currency. At 0938 GMT commercial banks quoted the shilling at 3,665/3,675, unchanged from last Thursday's close.
"There will be some inflows from foreign investors participating in the auction while demand from corporates has generally remained lacklustre," said a trader at a leading commercial bank. Bank of Uganda, the central bank, is due to sell a total of 265 billion shillings ($72.31 million) worth of Treasury bonds of 3-, and 10-year tenures.
TANZANIA - The Tanzanian shilling is expected to weaken due to continued elevated demand for dollars from energy and manufacturing sectors. On Thursday the shilling was quoted at 2,385/2,395, compared to last Thursday's close of 2,378/2,390.
"The demand is still high," a trader at one of the commercial banks in the capital Dar es Salaam told Reuters, adding demand was mostly from firms in energy and manufacturing. He said the shilling could weaken to 2,400 levels in the coming days if the demand from the two sectors remains strong.
KENYA - The Kenyan shilling is seen stable due to dollar inflows from diaspora remittances and offshore investors buying government debt, traders said. At 1222 GMT commercial banks quoted the shilling at 100.10/30 per dollar, compared with 100.00/20 at last Thursday's close.
"These levels should hold until end of the month when we see some demand coming in...the inflows have remained constant and a bit higher but the demand has been low," said a senior trader from one commercial bank.
ZAMBIA - The Kwacha is expected to remain range-bound against the dollar next week in the absence of any market moving events. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 11.8610 per dollar compared to a close of 11.8700 a week ago. "It is likely to remain within the current levels with likelihood of a weaker Kwacha," one senior commercial bank trader said.