NAIROBI: Kenyan, Ghanaian and Zambian currencies are expected to gain ground in the next week to Thursday, while Nigeria's will weaken, traders said.
KENYA
Kenya's shilling is seen firming after weakening on news that the central bank said it had placed Chase Bank under receivership for 12 months to protect depositors, creditors and the public.
At 1131 GMT, commercial banks quoted the shilling at 101.25/35 to the dollar, compared with last Thursday's close of 101.40/50.
"We expect the shilling to regain its lost ground in the coming days as the Chase Bank issue dies out," said a senior trader at one commercial bank.
UGANDA
The Ugandan shilling is forecast to trade broadly stable over the next one week, supported by weak demand and a liquidity mop up by the central bank.
At 1101 GMT commercial banks quoted the shilling at 3,355/3,365, stronger than last Thursday's close of 3,365/3,375.
"I would say we're not likely to see corporate buyers come back on the demand in a big way," he said. The central bank's removal 430 billion shillings ($128.17 million)from the interbank via a repo would offer extra support, a trader from a leading commercial bank said, adding the shilling was likely to trade in the 3,350-3,380 range.
ZAMBIA
The kwacha is expected to remain firm versus the dollar next week due to increased dollar supply from investors attracted to high-yielding government bonds.
At 0803 GMT on Thursday, commercial banks quoted the currency of Africa's second-biggest copper producer at 10.2829 per dollar, up from a close of 11.1000 a week ago.
"Stakeholders seek to take advantage of the high investment rates," the local branch of South Africa's First National Bank (FNB) said, predicting a break of the 10.000 psychological level.
GHANA
The cedi could record its first year-to-date gain in recent years after weeks of consistent rally on renewed investor confidence underpinned by improved foreign exchange inflows,
analysts said. Commercial banks quoted the cedi 3.8290 to the dollar by 1040 GMT on Thursday, compared to 3.8350 last week and down less than 1 percent since January. "In the week ahead the cedi should be able to rally to record a year-to-date gain, the first in recent years, on high general optimism about the cedi' s future trajectory, at least in the short term," said Biggles Amponsah of Accra-based Dortis Research. Ghana on Monday appointed Abdul-Nashiru Issahaku as governor of the central bank on Monday, promoting him from the deputy position to replace Henry Kofi Wampah, who retired at the end of March, four months earlier than expected.
NIGERIA
The naira is expected to weaken a little on the parallel market but seen flat on the official interbank market next week as businesses await the signing of Africa's biggest economy 2016 budget by President Mohammadu Buhari.
The local currency was flat at 320 to the dollar on the parallel market, while at the official window the currency was trading around the peg rate of 197 to the dollar.
"There is presently a lull in the forex market because of the non release of the 2016 budget by the government, but we see transactions picking up as soon as the government reveal its economic direction through the budget next week," one currency trader said.
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