The Tanzanian and Ugandan currencies are expected strengthen modestly next week, while those of Nigeria, Kenya and Zambia are likely to remain steady.
"We expect the shilling to appreciate slightly next week due to dollar sales by companies to meet end-of-month obligations and inflows from the agriculture sector, particularly cashew nut exports," said Moses Kawiche, a trader at CRDB Bank.
"Although companies will be converting dollars to pay salaries and other month-end obligations, demand for hard currency is also rising because of imports ahead of Christmas," independent financial analyst Maambo Hamaundu said.
The local currency was quoted at 455 to the dollar on the black market on Thursday, against 458 to the dollar last week, while there was no quote on the official window more than two hours after the market opened. The naira has consistently closed around 305.5 to the dollar on the interbank market since August due to daily intervention in the market by the central bank. International money transfer operators have also been providing dollar liquidity to support the local currency at the bureau de change window.