LAGOS, June 18 (Reuters) - The Kenyan and Ugandan shillings
are expected to hold steady against the dollar in the next week
to Thursday, as will Zambia's kwacha, traders said.
KENYA
The Kenyan shilling KES= is seen remaining steady due to
tightening liquidity in the local money market and inflows from
horticulture exports offsetting dollar demand from merchandise
importers and manufacturers.
Commercial banks quoted the shilling at 106.35/55 per
dollar, compared with 106.45/65 at last Thursday's close.
"Liquidity in the market is starting to thin and we expect
the shilling to gain in the process," said a senior trader from
one commercial bank.
UGANDA
The Ugandan shilling is expected to be little changed on the
back of the central bank mopping up excess liquidity in money
markets.
Commercial banks quoted the shilling at 3,720/3,730,
compared with last Thursday's close of 3,725/3,735.
On Thursday the Central Bank of Uganda absorbed excess
liquidity from the money market.
"The unit (shilling) will swing in a stable range, possibly
between 3,720-3,740," said a trader at one of the commercial
banks, adding that the liquidity mop-up would help lend support
to the currency.
TANZANIA
Tanzania's shilling TZS= is likely to weaken slightly due
to dollar demand from the manufacturing sector.
Commercial banks quoted the local currency at 2,309/19 on
Thursday, the same levels recorded a week earlier.
“We are seeing a slight demand for dollars in the market
mostly from manufacturing but not much inflow to match the
demand. We expected tourism to add up some dollars in the market
but we haven't received as expected,” a trader at one commercial
bank in Dar es Salaam said.
NIGERIA
Nigeria's naira NGN= is seen unchanged despite a build-up
of dollar demand, as the central bank rations foreign exchange
supplies to protect its dwindling reserve and support the
currency.
The naira opened weaker at 385 against the dollar on
Thursday for the second time in a row on the official market,
backed by the central bank, but recovered to 361 after two
trades.
Dollar demand has ballooned on the money market with payment
obligations accumulating amid hard currency shortages triggered
by an oil price crash. This has funnelled demand to the black
market, where the naira traded at around 453 on Thursday.
Finance Minister Zainab Ahmed said this week the country
will seek to unify its multiple exchange rate regime to generate
more local currency from its dollar inflows and manage the rate
in a sustainable manner. The kwacha ZMW= is likely to hold its own against the
dollar next week with the market mainly driven by matching
demand and supply.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 18.2140 per dollar,
the same level it traded at the close a week ago.
"We expect trading to continue around current levels, with
typical market fluctuations, unless we see big orders on either
side," Zambia National Commercial Bank (ZANACO) said in a note.