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

Zambia's currency is expected to remain under pressure against the US dollar in the coming week. Those of Tanzania, Uganda, Kenya and Nigeria should hold steady.
ZAMBIA - The kwacha is likely to remain under pressure against the dollar next week amid a decline in hard-currency inflows and demand arising from debt servicing. On Thursday, the currency of Africa's second-largest copper producer hit a year-high of 12.9300 per dollar, down from a close of 12.4900 a week ago. Zambia's external debt was at $10.05 billion at the end of last year, up from $9.51 billion at the end of the third quarter of the same year.
TANZANIA - Tanzania's shilling is expected to hold steady versus the dollar. On Thursday, commercial banks quoted the shilling at 2,300 per dollar, the same level at which is closed a week ago.
UGANDA - The Uganda shilling should trade in a stable range as month-end demand for hard currency ebbs.
At 1004 GMT commercial banks quoted the shilling at 3,755/3,765, compared to last Thursday's close of 3,730/3,740. Most of the month-end demand comes from local non-governmental organisations converting some hard-currency grants to pay salaries.
KENYA - The Kenyan shilling is expected to be stable on dollar demand from oil importers and hard-currency inflows from diaspora remittances and non governmental organizations, traders said. Commercial banks quoted the shilling at 101.10/30 per dollar, compared with 101.45/65 at last Thursday's close. "We expect a stable trend as we enter a new month," said a senior trader from one commercial bank.
NIGERIA - The naira is seen unchanged versus the US dollar next week with banks unwilling to trade weaker despite tight liquidity, traders said. Traders quoted the naira at 360.75 per dollar this week, slightly weaker than 360.50 quoted last week on the over-the-counter market. They said most banks preferred to fill their bids in tranches over several days rather than weaken the currency. The currency exchanged at 360.00 at retail bureaus and 306.45 on the official market, supported by the central bank. "We haven't seen so much from foreign buyers lately. We were hoping that yields won't go so down. The (FX) market is tight and everyone seems to be on the buy side," one trader said.