(Adds Nigerian naira)
DAR ES SALAAM, Aug 20 (Reuters) - Tanzania's shilling is
expected to gain ground against the U.S. dollar in the next
week, while Kenya's will weaken, traders said.
KENYA
The Kenyan shilling KES= is seen weakening due to dollar
demand from merchant importers and firms in the energy sector,
which normally increases in the last days of the month.
Commercial banks quoted the shilling at 108.00/20 compared
with last Thursday's close of 108.25/45. The shilling hit an
all-time low on Wednesday of 108.50/70.
"We're going into the end of month period, (dollar) demand
will be strong, while there are no inflows in the market," said
a trader at one of the commercial banks. "I expect the shilling
to weaken."
UGANDA
The Ugandan shilling UGX= is expected to hold steady, with
commercial banks expecting a surge of inflows from charities and
commodities exporters that traditionally occurs toward
month-end.
Commercial banks quoted the shilling at 3,675/3,685,
compared with last Thursday's close of 3,670/3,680.
"If the traditional month-end flows from NGOs, tea, coffee
and other sources are healthy I see the unit holding its ground
around current levels," said a trader at one commercial bank.
Most charities receive their money in dollars and convert it
to pay local expenses.
TANZANIA
Tanzania's shilling TZS= is expected to gain due to
increased dollar inflows from farm exports and tourism.
Commercial banks quoted the shilling at 2,315/2,325 per
dollar, from 2,320/2,330 at last Thursday's close.
"We foresee the shilling strengthening slightly in the
coming week on increased inflows from agricultural exports and a
recovery in tourism," Terry Karanja, treasury associate at AZA,
a Nairobi-based FX trading firm, said in a market report.
NIGERIA
Nigeria's naira NGN=D1 is seen flat on the official market
in the week ahead, after it weakened this week on the black
market due to a government plan to reopen airports later this
month, which could increase dollar demand, traders said.
The naira NGNFX=BDCN was quoted at 477 per dollar on the
unofficial market on Thursday, recovering from a low of 480 it
touched on Tuesday after the government announced plans to
resume international travel on Aug. 29.
The currency was traded at 386.42 on the over-the-counter
spot market NAFEX=FMDQ on volumes in excess of $220 million.
Volumes on the spot market, widely quoted by investors and
importers, have been declining daily, traders said, citing the
absence of foreign inflows and inadequate central bank
intervention, despite rising oil prices.
Dollar shortages have plagued the country for months after
sharp falls in the price of oil, Nigeria's main export.