NAIROBI, Nov 7 (Reuters) - The Kenyan shilling is expected
to firm as offshore investors buy banking stocks after the
government lifted a cap on lending rates, boosting dollar
supplies.
KENYA
The Kenyan shilling KES= could strengthen in the coming
week, supported by dollar inflows from investors abroad buying
bank shares on the stock market, after the government removed a
cap on commercial lending rates, traders said.
Commercial banks quoted the shilling at 102.65/85 per
dollar, compared with 103.25/45 at last Thursday's close.
"We are having a good source of dollars mostly from the
banking stocks on the stock exchange," said a senior trader from
one commercial bank.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure
against the U.S. dollar next week as hard currency supply
diminishes against higher demand from the retail sector.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.4700 per dollar,
down from 13.2850 a week ago.
"It will still remain under pressure because dollar demand
is still high," independent financial analyst Maambo Hamaundu
said.
UGANDA
The Ugandan shilling UGX= is likely to strengthen, helped
by remittances from Ugandans working abroad and inflows from
non-governmental organisations.
At 0952 GMT, commercial banks quoted the shilling at
3,698/3,708, compared with last Thursday's close of 3,710/3,720.
"We are entering that time of the year when we tend to see
higher flows from diaspora people who are usually sending money
to their relatives for December festivities," said a trader at a
leading commercial bank.
He said the shilling will likely trade around 3,680-3,700
over the next few days.
Non-governmental organisations are also expected to convert
higher volumes of their hard currency holdings around November
and early December to settle their books for the year.
TANZANIA
The Tanzanian Shilling TZS= is expected to gain ground
next week due to potentially higher dollar inflows from cashew
nut exports.
Commercial banks quoted the Shilling at 2,305/2,310 per
dollar on Thursday, compared with 2,310/2,315 a week earlier.
"The Shilling will definitely gain ground because the
pressure that was highly driven by oil importers and
manufacturers has ended," said a senior currency trader at a
commercial bank.