African currencies week ahead: Kenya, Uganda shillings and Ghana cedi seen weaker

Kenyan and Tanzanian shillings and Ghana's cedi are seen weakening against the dollar in the coming week, while Nigeria's naira will hold steady, traders said.
KENYA: The Kenyan shilling was seen weakening against the dollar in the coming week due to increased dollar demand from oil importers making end month transactions, traders said, adding they would also seek direction from central bank's rate-setting meeting on January 30.
Commercial banks quoted the shilling at 103.85/104.05 to the dollar, compared with 103.75/85 at last Thursday's close.
"We expect end month obligations to place pressure on the shilling going forward," a trader from a commercial bank said.
TANZANIA: The Tanzanian shilling is seen trading with a weakening tone in the days ahead, undermined by growing appetite for dollars from energy and manufacturing sectors and a slowdown in inflows for greenbacks.
Commercial banks quoted the shilling at 2,225/2,235 to the dollar on Thursday, stronger than 2,245/2,255 a week ago.
"The shilling is expected to weaken next week after gaining some ground on the US dollar due to end of month inflows," said Moses Kawiche, a trader at CRDB Bank.
NIGERIA: Nigeria's naira is seen broadly stable on the parallel and official foreign exchange market next week as international money transfer agents sustain dollar sales to bureau de change operations.
The local currency was quoted at 498 to the dollar on the open on the black market, broadly unchanged from 497 a dollar last week, while banks quoted the naira at 315 a dollar, but expected to close around 305 to the dollar the level it has traded at since August last year.
"Confidence is gradually returning to the forex market as a result of improved foreign exchange reserves, dollar sales by international money transfer agents and central bank assurance it will continue to support the local currency," one trader said.
The central bank said on Tuesday it would continue to provide hard currency, with priority given to manufacturing industries that need to import raw materials and spare parts.
GHANA: Ghana's cedi could remain under pressure next week as central bank forex auctions failed to meet a growing dollar demand by local businesses for their imports, analysts say.
The local currency has come under pressure since mid-January, relapsing to a previous record low of 4.3550 to the dollar at mid-morning Thursday compared to 4.3375 a week ago. The central bank said it sold $69 million to banks on Wednesday in renewed efforts to stabilise the cedi.
"The market is sending a clear signal about the inadequacy of dollar volumes being sold by the central bank ... the cedi could remain under pressure in the week ahead if forex inflows do not improve," analyst Joseph Biggles Amponsah of the Accra-based Dortis Research said.
ZAMBIA: Zambia's kwacha is seen extending gains into next week with overall sentiment boosted by a return of rainfall that has eased electricity supply constraints after a severe drought, while companies sell the dollars to meet month-end payments.
The kwacha has gained more than 1 percent this week, holding steady at its firmest levels since December, and was trading at 9.7650 per dollar on Thursday compared with its close of 9.8800 last Thursday.
"Sentiment has really turned with the return of rainfall, which points to a better harvest in coming months and also a stabilisation of the dam levels. Corporates are also doing well, and all of this supportive of the currency," said a trader in the capital Lusaka.