(Adds Nigerian naira)
DAR ES SALAAM, Feb 13 (Reuters) - Kenya's shilling is
expected to weaken against the dollar in the next week, while
Uganda's will be stable, traders said.
KENYA
The Kenyan shilling KES= is seen under pressure in the
coming week due to increased dollar demand from merchandise
importers and some multinational companies, traders said.
Commercial banks quoted the shilling at 100.40/60 per
dollar, compared with 100.35/55 at last Thursday's close.
"As we go into dividend payment period we might see the
strengthening slow down," said a senior trader from one
commercial bank.
UGANDA
The Ugandan shilling UGX= was seen holding steady, with
the central bank's decision to keep interest rates unchanged
expected to fuel favourable market sentiment.
Commercial banks quoted the shilling at 3,664/3,674,
compared with last Thursday's close of 3,670/3,680.
"Most market players expected a (rate) hold, which turned
out the case so overall I don't expect any major movement on
either side of the market," said a trader from a leading
commercial bank.
On Thursday Bank of Uganda held its benchmark lending rate
at 9%.
TANZANIA
The Tanzanian shilling TZS= is expected to gain slightly
due to reduced dollar demand from importers and an increase in
inflows from non-governmental organisations.
Commercial banks quoted the shilling at 2,306/2,316 per
dollar, the same level as last Thursday's close.
"The shilling will gain slightly ... because there are many
NGOs which are in pipeline selling dollars," a trader at one
commercial bank said.
"There is reduced pressure ... due to the slow demand for
dollars because importers who import from China are not trading
as much because of coronavirus ... this will stabilise the
shilling."
NIGERIA
Nigeria's naira NGN= is seen stable next week after the
central bank on Thursday offered longer-term contracts on the
naira to lure more foreign inflows and buff up its dwindling
dollar reserves, traders said.
The naira was quoted at around 364 per dollar on the
over-the-counter market, a level it has been for more than a
week.
Nigeria's currency market has been on bid with little supply
as foreign investors stay on the sidelines owing to lower yields
on the debt market, worsened by weak sentiment over fears that
the coronavirus outbreak in China would hit demand, traders
said.
The central bank has been helping to meet some dollar
demand, keeping the naira stable on the official market at
306.95.
"We are not seeing flows from foreign investors. There's no
liquidity in the market at the moment," one trader said.
"The new futures is to attract people to come through longer
tenor."