African currencies week ahead: Zambia's kwacha to firm on currency inflows from Treasury Bill auction

Zambia's kwacha is expected to firm next week on improved currency inflows from a Treasury Bill auction while the Tanzanian shilling is likely to remain under pressure as greenback demand increases amid slow inflows.
ZAMBIA: The Zambian kwacha is likely to firm as investors participating in Thursday's Treasury Bill auction buy local currency, as do companies preparing to meet month end obligations.
At 1159 GMT on Thursday, commercial banks quoted the currency of Africa's No 2 copper producer at 9.9100 per dollar, up from a close of 10.0150 a week ago. "In the short term, the Treasury Bill auction scheduled for today is expected to buoy the kwacha against the dollar, coupled with corporate demand for the local unit to meet month end obligations. The local currency is expected to trade in the range of 9.850 and 9.950," the Zanaco Treasury newsletter said.
TANZANIA: The Tanzanian shilling is expected to come under continued pressure against the US dollar in the days ahead, weighed down by a surge in demand for greenbacks from the energy sector and a slowdown in inflows. Commercial banks quoted the shilling at 2,245/2,255 to the dollar on Thursday, weaker than 2,210/2,220 a week ago. "We expect the shilling to remain under pressure next week because of a bullish dollar in the market," said Moses Kawiche, a trader at CRDB Bank.
GHANA: Ghana's cedi could stabilise in coming weeks on expected forex inflows for the purchase of a five-year 600 million cedi ($138 million) domestic bond at the end of the month and plans by the central bank to auction $120 million of cocoa loans to banks. The local unit had been fairly stable since December but came under pressure this week on surging dollar demand by local businesses. It was trading at 4.3375 to the greenback at mid-morning Thursday, down from 4.2238 a week ago.
"If the (5-year bond) issue comes and there is good participation from offshore, there could be additional forex inflows to boost the central bank's auctions in support of the cedi," analyst Joseph Biggles Amponsah of the Accra-based Dortis Research said.
UGANDA: The Ugandan shilling is expected to stay within a stable range over the coming days, helped by a mop up of 211 billion shillings ($58.69 million) of excess liquidity by the central bank and by commercial banks trimming their positions.
At 0936 GMT commercial banks quoted the shilling at 3,588/3,598, stronger than last Thursday's close of 3,605/3,615.
"We're seeing some banks unwinding positions ... and the removal of excess liquidity, I think we'll see some support from these two (factors) ," said a trader at a leading commercial bank.
NIGERIA: Nigeria's naira is seen unchanged on the parallel and official foreign exchange market in the coming days as international money transfer organisations begin selling dollars to bureau de change operators on Thursday, boosting greenback liquidity.
Travelex, one of the international money transfer firms in Nigeria is selling around $20 million to 2,500 bureaux de change operators on Thursday at $8,000 each, said Aminu Gwadabe, president of their association.
The local currency is quoted at 497 to the dollar on the black market, the same level as last week, while commercial lenders quoted the naira at 305.75 a dollar, around the level the local currency has traded at since August last year.
"Once dollar liquidity improves in the market I see the naira trading around 380-400 a dollar in the short-term," Gwadabe said. Bureau de change operators are quoting the naira at 399 to the dollar.
KENYA: The Kenyan shilling is seen trading broadly stable in the coming days, helped by tight local currency liquidity.
At 0828 GMT commercial banks quoted the shilling at 103.90/104.00, unchanged from last Thursday's close.
A market note from CBA bank said they expected the local unit to change hands within the 103.50 - 104.50 range "supported by the tight liquidity prevailing in the money market space."