African currencies week ahead: Zambian kwacha seen firm, other African currencies stable

Zambia's local currency is expected to firm in the coming week while other African currencies are seen remaining steady.
ZAMBIA - The kwacha is likely to strengthen next week, supported by healthy dollar inflows from the corporates converting greenbacks to pay mid-month taxes. On Thursday, commercial banks quoted the currency of Africa's No.2 copper producer at 9.7500 per dollar, stronger than a close of 9.9500 a week ago.
"The kwacha will continue to appreciate due to provisional taxes falling due on 10 July 2018," the local branch of South Africa's First National Bank (FNB) said in a note.
UGANDA - The Ugandan shilling is seen broadly stable, after last month's central bank market interventions helped soak up excess dollar demand and lift confidence in the local currency. At 0953 GMT commercial banks quoted the shilling at 3,842/3,852, compared to last Thursday's close of 3,875/3,885.
"The sentiment toward the shilling is overall positive and that will help because we've seen excess demand ease after the interventions," Faisal Bukenya, head of treasury at Exim Bank said, referring to last month's three-time injection of dollars into the interbank market by the central bank.
KENYA - The Kenyan shilling is expected to remain stable against the dollar in the coming week supported by inflows from horticulture exports and offshore investors amid thin importer demand and tight liquidity in the money market, traders said. Commercial banks quoted the shilling at 100.65/85 per dollar, compared with 101.00/20 at last Thursday's close. "The shilling has appreciated on the back of inflows ... Demand is thin, so banks are offloading whatever they can," said a trader from a commercial bank, referring to banks selling dollars to beef up their shilling positions.
GHANA - Ghana's cedi is seen flat next week as the central bank scales up interbank dollar sales to shore up the local unit after it hit a record low this week, analysts said. The currency of the major commodity exporter weakened 5.3 percent in the first six months compared to 3.3 percent in the first half of 2017. It was trading at 4.7900 to the greenback by midday on Thursday, down from 4.7700 a week ago. "We project the demand for dollars to reduce and the continued supply of dollars by the Bank of Ghana to slow down the pace of depreciation," Accra-based currency analyst Raphael Adubila said.