African currencies outlook: Ghana's cedi seen regaining strength versus dollar

Dollar sales by local mines in Ghana next week could lead to a pause in the cedi's downward spiral, while reduced investor risk appetite could hurt the Zambian kwacha, which hit its highest level in more than a year this week.
Ghana's cedi is expected to strengthen against the dollar next week as corporate demand for the greenback eases due to inflows from local mining firms.
The currency of the world's second largest cocoa grower has been under pressure since the start of the year, declining more than 17 percent against the dollar on persistent demand for imports to fuel the growing economy.
Barclays Bank Ghana said demand for the dollar had begun to ease mainly due to dollar sales by mines this week. "With corporate demand easing, the local unit looks set to strengthen slightly in coming sessions," it said, adding that the cedi could gain to around 1.9450 next week, from its current level of 1.9500.
ZAMBIA: The Zambian kwacha, which hit its highest level in more than a year this week as citizens reacted to a new law curbing the use of dollars, is expected to experience some volatility next week as the domestic market looks to the global economy for direction.
Commercial banks quoted the kwacha at 4,810 to the dollar on Thursday, up 2 percent from 4,920 last week. Traders said the kwacha was likely to come under pressure due to dampened risk appetite arising from persistent worries about the euro zone debt crisis and soaring borrowing costs in Spain.
TANZANIA:Tanzania's shilling is expected to strengthen marginally against the dollar in the days ahead, supported by corporate dollar sales and inflows from the tourism and agriculture sectors. Commercial banks quoted the shilling at 1,580/1,590 to the dollar on Thursday, stronger than 1,582/1,592 a week ago.
KENYA: Kenya's shilling is expected to remain stable against the dollar in the days ahead, supported by the central bank's proactive stance in mopping up excess liquidity. Commercial banks quoted the shilling at 84.00/84.10 per dollar, 0.2 percent up from last Thursday's close of 84.15/35.
"It will remain supported by the liquidity mop-ups. Demand (for dollars) has not been big," said Jeremiah Kendagor, head of foreign exchange trading at Kenya Commercial Bank.
UGANDA: Uganda's shilling is expected to hold steady against the dollar over the next week due to sluggish demand for the US currency by importers.
"Because we are not seeing any serious demand, the shilling is likely to remain stable around the current range," said Dennis Mashanyu, a trader at Standard Chartered Bank in Nairobi.
NIGERIA: The naira is seen under pressure next week and may depreciate further as strong demand for the greenback outpaced supply from oil companies and offshore investors buying Nigerian debt. The naira was trading at 161.90 to the dollar on Thursday, weaker than its 161.30 close the previous day.
Traders said renewed strong demand for the dollar from importers was putting pressure on the naira.