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WEEKAHEAD-AFRICA FX - Kenya shilling, Zambian kwacha to weaken

Published 18/02/2021, 13:37
WEEKAHEAD-AFRICA FX - Kenya shilling, Zambian kwacha to weaken
USD/KES
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USD/TZS
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USD/UGX
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USD/ZMK
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KAMPALA, Feb 18 (Reuters) - Kenya's shilling and Zambia's
kwacha 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.

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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