DAR ES SALAAM, Feb 20 (Reuters) - Kenya's shilling is
expected be under pressure against the dollar in the next week,
while Uganda's will be stable, traders said.
KENYA
The Kenyan shilling KES= is seen under pressure due to
increased end month dollar demand from the energy sector and
some multinational companies, traders said.
Commercial banks quoted the shilling at 101.25/45 per
dollar, compared with 100.50/70 at last Thursday's close.
"Activity was muted but demand is coming back...we expect
this to push the dollar higher," said a senior trader from one
commercial bank.
UGANDA
The Ugandan shilling UGX= is expected to trade broadly
stable in the week ahead mostly on the back of inflows from
offshore investors and non-governmental organisations.
At 1208 GMT commercial banks quoted the shilling at
3,665/3,675, unchanged from last Thursday's close.
A trader at a leading commercial bank said hard currency
inflows from offshore investors who participated in this week's
Treasury bond auction could help give support to the local unit.
The central bank sold two and 15-year bonds worth a combined
total of 285 billion Ugandan shillings ($77.76 million).
"I think some charities will also be doing conversions as
end-month approaches and those inflows will also help the
shilling," the trader said.
TANZANIA
The Tanzanian shilling is expected to slightly appreciate
next week due to inflows from corporates buying the local
currency to meet their end-of-month obligations.
Commercial banks quoted the shilling at 2,310/2,315 on
Thursday, the same levels recorded a week earlier.
"The shilling has been stable and we expect it to slightly
appreciate next week because corporates, which receives income
in dollars, will be buying the shilling to meet their end-of-the
month obligations such as paying salaries and taxes," a trader
at a commercial bank in Dar es Salaam said.
"The demand will continue to be driven by manufacturers and
oil importers because traders have slowed down due to slow
production and importation issues in China," he added.
NIGERIA
Nigeria's naira NGN= is seen weaker next week due to
liquidity shortages on the currency market after lower yields on
the debt market keep foreign investors on the sidelines, traders
said.
The currency was quoted weaker at around of 364.75 naira to
365 naira per dollar on Thursday on the over-the-counter market
as against 364 it has been for more than a week.
The central bank has been helping to meet some dollar
demand, keeping the naira stable on the official market at
306.95.
Last week, the central bank introduced longer-term futures
contracts on the naira in a move to lure more foreign inflows
and buff up its dwindling dollar reserves. "The market is on bid ... foreign investors are not coming.
The fundamentals are not there for them to come," one trader
said.
ZAMBIA
The kwacha ZMW= is likely to marginally firm against the
U.S. dollar in the coming week as companies sell hard currency
to meet month end obligations.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 14.6000 per dollar
from a close of 14.6500 a week ago.
"It should make some minor gains because of month end dollar
conversions," independent financial analyst Maambo Hamaundu
said.