NAIROBI, April 2 (Reuters) - The Nigerian naira and Kenyan
shilling are expected to remain under pressure from the dollar
in the week ahead mainly due to lower export earnings caused by
coronavirus-related disruptions.
NIGERIA
The Nigerian naira NGN=D1 is likely to weaken next week as
banks struggle to fill dollar orders by importers seeking to
meet past due obligations in the face of lower hard currency
earnings, traders said.
The naira has been weakening across the official and black
markets since last month after the price of oil collapsed,
prompting the central bank to devalue the currency and suspend
foreign exchange sales to retail currency traders.
The naira eased to 387.30 per dollar on Thursday after it
touched a new low of 387.70. The currency was quoted at 415
naira per dollar on the black market, much weaker than the spot
market rate.
Foreign currency inflows into Africa's biggest economy dried
up after oil prices plunged as the coronavirus outbreak worsened
an already tight currency market.
KENYA
The Kenyan shilling KES= is expected to remain under
pressure from the dollar due to lack of foreign currency inflows
from tourism and farm exports caused by the coronavirus
outbreak, traders said.
Commercial banks quoted the shilling at 105.75/95 per
dollar, compared with 105.00/20 at last Thursday's close.
"Diaspora remittances are being affected by the lockdowns in
Europe and America, that's a source of dollar supply that has
been reduced," said a senior trader from one commercial bank,
referring to cash sent home by Kenyans abroad.
UGANDA
The Ugandan shilling UGX= is expected to be stable in the
week ahead as the central bank moves to tighten liquidity in the
money market, traders said.
At 0943 GMT, commercial banks quoted the shilling at
3,785/3,795 per dollar, compared with last Thursday's close of
3,820/3,830.
A trader at a leading commercial bank said they anticipated
the local unit would trade in a narrow range around 3,790 per
dollar as liquidity tightens.
"The mop-up will offer some support," the trader said,
adding that demand was expected to remain mostly subdued amid
limited economic activity, offering extra support to the local
unit.
The central bank on Thursday removed an undisclosed amount
of cash via a repurchase agreement and a deposit auction.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure next
week as market participants continue buying hard currency to
cover their dollar shortfalls.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 18.5700 per dollar,
down from a close of 17.8300 a week ago.
"If the past ten days are anything to go by, we could see
trades past 18.70," the Zambian branch of South Africa's First
National Bank (FNB) said in a note, referring to a string of
kwacha losses.