(Adds Tanzania shilling)
NAIROBI, March 18 (Reuters) - Kenya's shilling is expected
to weaken against the U.S. dollar in the next week to Thursday,
while Uganda's shilling and Zambia's kwacha will hold steady,
traders said.
KENYA
The Kenyan shilling KES= is seen easing, on strong dollar
demand from general merchandise importers and manufacturers.
Commercial banks quoted the shilling at 109.75/109.95,
compared with last Thursday's close of 109.55/109.75.
"We expect the shilling to remain under pressure due to an
end of month increase in demand from the energy sector and
manufacturing as well as general importers," said a trader at
one commercial bank.
UGANDA
The Ugandan shilling UGX= is seen trading in a broadly
stable range on the back of a slowdown in demand from
foreign-owned corporates.
Commercial banks quoted the shilling at 3,665/3,675, per
dollar compared with last Thursday's close of 3,660/3,670.
"In last couple of weeks foreign-owned corporates were in
the market because it is dividends season but I think that
demand is getting exhausted," said an independent foreign
exchange trader in the capital Kampala.
The local currency, he said, would likely oscillate in the
3,655-3,685 range.
TANZANIA
Tanzania's shilling is expected to face minor pressure next
week due to economic activities slowing as the East African
nation mourns the death of President John Magufuli on Wednesday.
Commercial banks quoted the shilling at 2,314/2,324 on
Thursday, the same levels as last week's close.
"We foresee some pressure on the shilling as the new
administration and businesses adjust to the changes," Terry
Karanja, a treasury associate at AZA, a Nairobi-based FX firm
said.
NIGERIA
The naira NGN=D1 is seen flat in the coming week as dollar
shortages persist and traders bid for the currency with a range
on the spot market in an attempt to fill their order book.
The currency was quoted at 485 per dollar on the black
market NGNFX=BDCN on Thursday, the same level it was quoted at
last week.
It traded with a range of 407 to 410 naira on the spot
market NAFEX=FMDQ but remained flat on the official market
backed by the central bank at 381 naira since last July.
Nigeria's central bank governor this week said the economy
needs to be given a chance to reset and diversify, addressing
foreign exchange management concerns raised by the World Trade
Organization. The kwacha ZMW= will likely continue trading within the
current range against the dollar supported by month-end hard
currency sales.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 21.9800 per dollar
from a close of 21.9450 last Thursday.
"We still have high demand for the dollar amid erratic
inflows but the kwacha should get some support from corporates
that will be preparing for month-end payments," one commercial
bank trader said.