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LUSAKA, Oct 3 (Reuters) - Zambian, Nigerian, Kenyan, Ugandan
and Tanzanian currencies are all expected to be stable in the
coming week.
ZAMBIA
The Kwacha ZMW= will be supported by an improved supply of
hard currency as companies prepare to pay taxes.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.1400 per dollar
from a close of 13.1750 a week ago.
"There are taxes due next week on Thursday and this should
support the local currency," one senior commercial bank trader
said.
NIGERIA
Nigeria's naira NGN= is expected to be steady next week
hitting resistance against the U.S. dollar at current levels and
with dealers refusing to lower bids for the greenback, traders
said on Thursday.
The naira was quoted in a range of 362-362.50, after
touching a low of 362.65 the previous day. The naira was quoted
at 360 at exchange bureaus and at 307 on the official market.
Nigeria operates a multiple currency regime.
Traders said demand was lacklustre as most people preferred
to wait and bid for the U.S. currency at firmer rates than
weaken the naira.
KENYA
The Kenyan shilling KES= isn't expected to change much
against the U.S. dollar in the coming week with inflows from
diaspora remittances helping meet dollar demand from the energy
sector amid excess liquidity in local money markets, traders
said.
Commercial banks quoted the shilling at 103.80/104.00 per
dollar, compared with 103.75/95 at last Thursday's close.
"The liquidity aspect has been the dominant factor and
central bank has been mopping up aggressively...importer demand
is waning," said a trader from one commercial bank.
UGANDA
The Ugandan shilling UGX= is expected to be partly
supported by inflows of hard currency from commodity exports and
offshore investors buying Ugandan government debt.
At 1212 GMT on Thursday, commercial banks quoted the
shilling at 3,675/3,685, unchanged from last Friday's close.
"I think inflows from this week's (Treasury) bond auction
will compliment inflows from coffee and other agricultural
commodities and help keep the market square," said a trader at
one of the commercial banks in the capital Kampala.
He said the local currency would likely trade around 3,680
to the dollar in the coming days.
TANZANIA
The Tanzanian shilling TZS= will struggle to move
decisively given the balance between U.S. dollar supply and
demand in the market.
On Thursday commercial banks in the capital Dar Salaam
quoted the shilling at 2,293/2,303, the same level as a week
"We expect mining, services industry and transport to
contribute more to the inflows, while the demand will be driven
by oil importers and manufacturers," said a forex trader from
one of the commercial banks in Dar es Salaam.