NAIROBI: The Kenyan and Nigerian currencies are expected to weaken in the next week to Thursday, while Ghana’s, Uganda’s and Zambia’s are seen trading steady, traders said.

Kenya

Kenya’s shilling is expected to weaken slightly, hurt by increased foreign-currency demand from oil-retailing companies.

Commercial banks quoted the shilling at 130.00/131.00 to the dollar, compared with last Thursday’s closing rate of 130.50/131.50.

“We might depreciate slightly. Most of the (dollar) demand side that had been postponing, waiting for lower (exchange) rates … will now come back to the market. We expect oil (companies) to come in,” one trader said.

Kenyan shilling stable, to firm due to tea sector dollar inflows

Nigeria

Nigeria’s naira could fall on the official market, as an estimated $1.3 billion in naira futures due to mature at the end of the month weigh on the currency.

LSEG data showed the naira at 1,530 to the dollar on the official market on Thursday, compared with 1,448 a week ago. The unit was sold at 1,550 on the parallel market on Thursday.

“Naira futures which mature at the end of the month will add pressure on the naira, increasing the demand pressures we’ve already seen,” a trader said.

“The central bank will probably need to intervene in the market to stop a sharp fall in the naira,” he said.

Ghana

Ghana’s cedi may halt its losing streak on the back of strong central bank support.

LSEG data showed the cedi trading at 14.2000 to the dollar on Thursday, compared with 13.9500 at last Thursday’s close.

“Demand for dollars continues to weigh on the cedi amid limited supply. The central bank, in response, has shown some commitment in fighting the sharp weakness by intervening significantly,” said Chris Nettey, head of trading at Stanbic Bank Ghana.

“We expect continued support from the central bank in the coming sessions to bring some relief to the cedi,” he added.

Another trader said: “The currency is likely to hold steady in the coming week as a significant portion of corporate FX demand has been met.”

Uganda

Uganda’s shilling is seen broadly stable as traders hold off from big bets before the next fiscal year’s budget expected next month.

Commercial banks quoted the shilling at 3,760/3,770 to the dollar, compared with last Thursday’s close of 3,775/3,785.

“The budget is around the corner, a lot of players will want to hold their cards close to their chest as they await details in the budget,” one trader said.

He said the shilling was likely trade in a range of 3,750-3,790 to the dollar ahead of the 2024/25 budget’s release.

Zambia

Zambia’s kwacha is likely to be steady due to improved dollar supply and investor sentiment after the government edged closer to restructuring its international bonds.

On Thursday the currency of Africa’s second-largest copper producer was trading at 25.00 per dollar, stronger than 27.25 a week ago.

Zambia’s government on Monday sought investor consent for a deal to restructure $3 billion of its Eurobonds.