NAIROBI, Dec 5 (Reuters) - The Kenyan shilling is expected
to be steady against the dollar in the week ahead supported by
hard currencies sent home for the holidays by Kenyans who live
abroad, while the Zambian kwacha will also be stable.
KENYA
The Kenyan shilling KES= is seen stable in the coming week
with tightening liquidity in the local money market and inflows
from diaspora remittances offering support against dollar demand
from merchandise importers, traders said.
Commercial banks quoted the shilling at 101.75/95 per
dollar, compared with 102.65/85 at last Thursday's close.
"People are unloading their long dollar positions to fund
Kenya shillings," said a senior trader from one commercial bank.
ZAMBIA
The kwacha ZMW= is expected to remain in its current
ranges against the U.S. dollar next week due to matching demand
and supply of hard currency.
On Thursday, commercial banks quoted the currency of Zambia,
Africa's second-largest copper producer, at 14.9000 per dollar,
down from a close of 14.5000 a week ago.
"Demand and supply seems to be driving short term foreign
exchange rate movements. We anticipate the exchange rate to be
range bound," Zambia National Commercial Bank (ZANACO) said in a
market note.
UGANDA
The Ugandan shilling UGX= is likely to strengthen in the
coming days as demand for dollars from merchandise importers
tails off.
At 0923 GMT, commercial banks quoted the shilling at
3,685/3,695, unchanged from last Thursday's closing level.
"Most importers have already met all their hard currency
needs... we expect there will be very limited demand from that
side," said a trader from a leading commercial bank.
TANZANIA
The Tanzanian shilling TZS= is expected to gain ground
against due to a decline in pressure from importers buying
dollars and an increase in hard currency inflows from cashew nut
exports.
Commercial banks quoted the shilling at 2,297/2,303 per
dollar on Thursday, up from 2,300/2,305 recorded a week earlier.
"We are heading to the end of the year where business always
slows down. We don't expect pressure from corporates and large
importers,” a currency trader from one of the commercial banks
in Dar es Salaam told Reuters.