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UPDATE 1-AFRICA FX - Kenya shilling, Zambian kwacha and Nigeria's naira to weaken

Published 18/02/2021, 13:57
© Reuters.
USD/KES
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USD/NGN
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USD/TZS
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USD/UGX
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USD/ZMK
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(Adds Nigeria's naira)
KAMPALA, Feb 18 (Reuters) - Kenya's shilling, Zambia's
kwacha and Nigeria's naira are expected to weaken against the
dollar in the next week to Thursday, traders said.

KENYA
Kenya's shilling KES= is expected to come under pressure
due to month-end dollar demand from importers.
Commercial banks quoted the shilling at 109.45/65 to the
dollar, compared with last Thursday's close of 109.35/55.
"We might see it come under pressure as we approach the end
of the month because of expected usual end moth demand by the
importers," a trader at one commercial bank.

UGANDA
The Ugandan shilling UGX= is seen trading in a broadly
stable range amid a general slow uptake of dollars both in the
interbank market and from importers.
Commercial banks quoted the shilling at 3,660/3,670,
unchanged from last Thursday's close.
"The demand side for dollars has been lethargic for a while
and I don't reckon there will be a significant change in the
near term," said an independent forex trader in the capital
Kampala, who expected the shilling to trade in the 3,650-3,680
range in the week ahead.

TANZANIA
Tanzania's shilling TZS= is expected to remain stable
donor inflows from development partners and foreign investors
supporting dollar demand.
Commercial banks quoted the shilling at 2,311/2,329 on
Thursday, nearly the same levels from last week's close of
2,314/2,324.
"For the coming week, we foresee a stable shilling on the
back of inflows from the EU and investors," Terry Karanja, a
treasury associate at AZA, a Nairobi-based foreign exchange
trading firm said.

NIGERIA
The naira NGN= is seen easing on the spot market after it
lost ground on the derivatives market and hit a record intra-day
low on the over-the-counter market this week, traders said.
The naira fell to 423.15 per dollar this week on the spot
market, quoted by importers and foreign investors. It was quoted at 381 naira on the official market, a level
set in July and backed by the central bank. The currency sold at
478 naira on the black market on Thursday.
Dollar scarcity hit Nigeria after last year's oil price
crash slashed government revenues, piling pressure on the
currency and funnelling demand to the black market.

ZAMBIA
The kwacha ZMW= will likely continue to weaken on limited
foreign exchange inflows amidst rising expenditures, especially
on imports of farming inputs.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 21.6100 per dollar
compared to 21.5350 at the close of business a week ago.
"Fiscal consolidation remains challenging given the
significant uncertainty about the evolution of the escalating
COVID-19 infections and the debt restructuring process," the
central bank said in a statement on Wednesday.

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