NAIROBI, Sept 17 (Reuters) - The Nigerian naira is expected
to weaken against the dollar in the week ahead mainly due to
shortages of hard currencies while the Zambian kwacha will also
be under pressure.
NIGERIA
Nigeria's naira NGNFX=BDCN could weaken on the black
market next week as a dearth of foreign exchange on the official
market spills over into the parallel market, traders said.
The naira eased 1.08% to 465 naira per dollar on the
unofficial black market on Thursday.
The central bank has resumed the sale of dollars to foreign
investors stuck in Nigeria following a coronavirus-induced oil
price crash, which drove volatility in the currency market.
The naira traded at 386.05 on the over-the-counter spot
market NAFEX=FMDQ , widely quoted by investors and importers,
on volumes in excess of $280 million on Wednesday.
The naira was quoted at 381 per dollar on the official
market, which is supported by the central bank.
KENYA
The Kenyan shilling KES= , is expected to remain under
pressure against the dollar next week.
The currency of East Africa's biggest economy was trading at
108.35/55 per dollar on Thursday, compared with 108.40/60 a week
earlier.
"If it gets support from the central bank, it could
stabilise a bit and if not, we could continue to see the
weakening trend," said a currency trader at a commercial bank.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure next
week due to a drop in the supply of hard currency, amid growing
demand for dollars.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 19.8600 per dollar,
down from a close of 19.7500 a week ago.
Hard currency sales by mining companies has dropped and
demand was rising to pay for health, energy and agricultural
sector imports, traders said.
UGANDA
The Ugandan shilling UGX= is expected to inch down as a
planned re-opening of the country's international borders, which
were closed due to the coronavirus crisis, boosts importer
appetite for hard currency.
At 1034 GMT, commercial banks quoted the shilling at
3,687/3,697, compared with last Thursday's close of 3,695/3,705.
International flights will resume on Oct. 1 for the first
time since March. "Resumption of international travel will possibly jerk up
demand (for dollars)," said a trader at one commercial bank.
TANZANIA
Tanzania's Shilling TZS= is expected to hold steady next
week as the demand for dollars by importers is evenly matched by
the available supplies of the hard currency.
Commercial banks quoted the Shilling at 2,315/2,325 per
dollar, unchanged from its closing level last Thursday.