(Adds Nigerian naira)
LUSAKA, April 9 (Reuters) - Zambian, Ugandan and Nigerian
currencies are expected to remain on the back foot in the coming
week while Kenya's will likely hold steady.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure against
the U.S. dollar next week as COVID-19 hits productivity and debt
service obligations drain hard currency.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 18.6240 per dollar
down from a close of 18.5140 a week ago.
"The kwacha is expected to continue trading on the back foot
due to issues brought about by the coronavirus and debt
servicing," one commercial bank trader said.
Glencore 's GLEN.L Zambian subsidiary Mopani Copper Mines
(MCM) shuttered its mining operations on April 8 but continued
to process material it has on site in its smelter and refinery
until further notice, citing COVID-19.
The Ugandan shilling UGX= is expected to trade with a
weakening bias in the coming days as supplies of hard currency
start to dwindle on the back of a coronavirus-induced economic
lockdown.
At 1003 GMT commercial banks quoted the shilling at
3,795/3,805, compared to last Thursday's close of 3,780/3,790.
"Going forward we anticipate supplies of hard currency to
really get constrained considering the hit on exports," said a
trader at one of the commercial banks.
Uganda has imposed some of the strictest measures to combat
the spread of the coronavirus including a total ban on both
public and private transport, closure of all but the most
essential of businesses and a ban on all public gatherings.
KENYA
The Kenyan shilling KES= is seen stable in the coming
week, drawing support from slow trading activity and potential
dollar inflows from credit the Kenyan government is seeking from
international lenders to combat the coronavirus outbreak.
Commercial banks quoted the shilling at 106.10/30 per
dollar, compared with 105.75/95 at last Thursday's close.
"What I am waiting for is the Kenyan government request to
IMF and World bank for (credit) facilities, we're keeping our
eyes open on that front for announcements," said a senior trader
from one commercial bank.
NIGERIA
Nigeria's naira NGN=D1 is likely to ease next week as dollar
shortages worsen in the West African nation as investors and
importers rush to buy local currency futures to hedge price risk
on the spot market, traders said.
The naira eased to as low as 401.45 on the over-the-counter
market on Thursday before recovering to 384.83 amid tight dollar
liquidity. The currency traded at 361 on the official market
supported by the central bank.
Traders said activity has increased on the naira futures
market pushing up rates as investors and importers buy the
derivatives instrument to hedge risk while bidding for liquidity
on the spot market.
The naira has weakened as a spat between major oil producers
Saudi Arabia and Russia for market share exacerbated an oil
price plunge triggered by falling demand from the coronavirus
outbreak.