African currencies week ahead: Ghana's cedi seen weaker on dollar demand, kwacha to firm

Ghana's cedi is likely to weaken on increasing dollar demand, while the Zambian kwacha is set to firm as companies convert greenbacks for tax payments.
GHANA: Ghana's cedi is seen dipping on rising dollar demand unless there are significant greenback inflows to augment the central bank's weekly support, an analyst said.
The currency of the West African commodity exporter has been under pressure in recent weeks due to rising dollar demand by local firms as they restock for the second half year. It was trading at 3.9525 at 1100 GMT on Thursday compared to 3.9475 a week before.
"The firm (dollar) demand remains and marginal losses are expected of the cedi in the coming week without it touching the resistant 4.0 level against the dollar," analyst Joseph Biggles Amponsah of the Accra-based Dortis Research said.
ZAMBIA: The kwacha will likely strengthen next week due to increased supply of dollars from companies converting to pay taxes which are due in local currency.
At 0750 GMT, commercial banks quoted the currency of Africa's second-biggest copper producer at 9.6000 per dollar from a close of 9.8500 a week ago. "This time of the month companies generally make foreign currency conversions to meet various obligations," the local branch of South Africa's First National Bank (FNB) said in a note.
UGANDA: The shilling is forecast to trade on a firmer footing, helped by a mop up of 377.3 billion shillings ($111 million) by the central bank on Thursday and tax payments by firms. At 0956 GMT commercial banks quoted the shilling at 3,390/3,400, stronger than last Thursday's 3,400/3,410.
Most companies have been settling their half-year tax obligations and Faisal Bukenya, head of market making at Barclays bank, said this left them running low on local currency liquidity, diminishing the demand for hard currency. Financial markets in Kenya, Tanzania and Nigeria were closed on Thursday for a public holiday.