African currencies week ahead: Kenyan shilling seen soft, most African currencies up

The Kenyan shilling is likely to come under pressure next week as most other African currencies strengthen.
KENYA - The Kenyan shilling is forecast to come under pressure due to end month demand and excess money market liquidity, traders said. Commercial banks quoted the shilling at 101.20/30 compared with 100.95/101.05 at last Thursday's close.
"There is pressure on the local currency explained by excess liquidity in the money market and end month dollar demand," said a senior trader at one commercial bank.
UGANDA - The Uganda shilling is seen trading in a firm position, helped by flat importer demand for dollars and inflows from offshore investors seeking to invest in Ugandan debt. Commercial banks quoted the shilling at 3,755/3,765, same level as last Thursday's close.
"Offshore investors are coming back, so we expect support from their inflows while on other hand appetite is down," Faisal Bukenya, head of treasury at Exim Bank, said.
TANZANIA - Tanzania's shilling will likely appreciate slightly as companies and non-governmental organisations sell dollars to meet their end of the month like salaries.
Commercial banks quoted the shilling at 2,286/2,296 to the dollar, compared with last Thursday's close of 2,292/2,297. "Next week we forecast that the shilling will be stable and even stronger than this week by appreciating for at least a shilling," said Mohamed Laseko, senior trader at CRDB Bank.
ZAMBIA - The kwacha is expected to hold firm next week supported by dollar sales from companies preparing to pay salaries and other month end obligations. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 11.6380, stronger than a close of 12.0000 on Wednesday last week.
"The Kwacha is expected to continue trading with a bullish tone against the US dollar on the back of strong corporate inflows," Zambia National Commercial Bank said in a note.
GHANA - Ghana's cedi is expected to remain stable on improved interbank forex liquidity supported by regular central bank dollar sales, analysts said. The cedi was trading at 4.85 to the dollar by mid morning on Thursday, compared to 4.86 a week ago. "The cedi is expected to remain firm, at least for the rest of the month before a reversal is triggered," currency analyst Joseph Biggles Amponsah said.