African currencies week ahead: Nigeria's naira under pressure after gasoline price hike

15 May, 2016

Nigeria's naira will likely weaken against the dollar next week after the country increased gasoline prices by 67 percent, while a positive review from the International Monetary Fund could keep Ghana's cedi steady.
"There is dollar scarcity right now in the market, even at 324 naira you can't find dollar to buy," one trader told Reuters. Traders said expected pressure from fuel importers could further push down the naira value in the coming days.
"Driven by adequate dollar supply from major sectors, the pair could touch 3.8170 in the period," analyst Joseph Biggles Amponsah of the Accra-based Dortis Research said.
Ghana, which exports gold, cocoa and oil, signed a three-year, $918 million deal with the IMF a year ago to restore fiscal balance and the Fund said on Wednesday it was broadly satisfied with implementation of the programme so far. KENYA: The shilling was expected to stay around the 100.50 to 100.70 level next week, with demand for dollars from manufacturers and other companies matched by the steady inflows of foreign exchange from exporters. By 0653 GMT, the shilling was quoted at 100.45/65, compared with last Thursday's close of 100.40/50. "We remain locked between 100.50 and 100.70. Unless big orders come in from manufacturers and exporters, as of now demand and supply remain well matched," said a trader from a commercial bank.

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