NAIROBI, April 30 (Reuters) - The Nigerian currency is
expected to weaken against the dollar over the next week as the
country prepares to begin easing its coronavirus lockdown while
the Kenyan shilling is seen stable.
NIGERIA
Nigeria's naira is likely to weaken owing to a backlog of
dollar demand as the central bank restarts forex sales to
commercial banks ahead of the expected gradual easing of a
coronavirus lockdown, traders said.
The naira this week hit a low of 460 against the dollar on
the black market, before the central bank on Wednesday said it
would sell $100 million per week to help individuals with dollar
expenses abroad and importers revamp economic activities.
The bank last month suspended forex sales to retail currency
traders due to the lockdown, causing forex demand to build up
and piling pressure on the naira, traders say.
The currency of Africa's largest economy was quoted at
388.84 naira per dollar on the over-the-counter spot market,
mostly used by foreign investors and exporters.
Nigeria is expected to begin a gradual loosening the
lockdown on May 4.
TANZANIA
The Tanzania shilling TZS= is expected to hold steady amid
a squeeze in demand caused by disruption from the coronavirus
outbreak.
Commercial banks quoted the shilling at 2,309/19 on
Thursday, unchanged from last week.
With parts of the economy shuttered to contain the spread of
COVID-19, a trader in one of the commercial banks in the
commercial capital Dar es Salaam said demand for hard currency
was thin.
"COVID-19 has really disrupted businesses," the trader said.
KENYA
The Kenyan shilling KES= is also seen holding steady as
some traders eye possible inflows from the IMF and World Bank
loans that Kenya is seeking to help combat the COVID-19
outbreak.
Commercial banks quoted the shilling at 107.20/40 per
dollar, compared with 106.95/107.15 at last Thursday's close.
"Markets have been depressed... we expect some support
coming in because of COVID-19 to bring balance," said a senior
trader from one commercial bank, referring to the loans.
UGANDA
The Ugandan shilling UGX= is seen weakening as some
foreign-owned firms buy hard currency to help pay dividends for
last year.
At 1050 GMT commercial banks quoted the shilling at
3,790/3,800 compared to last Thursday's close of 3,780/3,790.
A trader at a leading commercial bank said foreign-owned
entities, especially commercial financial institutions and firms
in sectors like manufacturing, were expected to start paying
dividends next month.
"I see demand from such entities triggering some pressure on
the local unit," said a trader from a leading commercial bank,
adding that the shilling would likely trade between 3,800-3,820.
ZAMBIA
The kwacha ZMW= is likely to continue trading within
current levels next week with limited market activity as the new
month begins.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 18.6500 per dollar,
down from a close of 18.4630 a week ago.
"There is likely to be little change, it should hold within
the same band even going into next week," independent financial
analyst Maambo Hamaundu said.