ABUJA, Dec 31 (Reuters) - Kenya's shilling is expected to
weaken in the next week to Thursday, while Uganda's shilling and
Nigeria's naira will be stable, traders said.
KENYA
The Kenyan shilling KES= is expected to depreciate
slightly on the back of healthy dollar demand by importers,
weighing against scant supplies.
Commercial banks quoted the shilling at 109.15/109.35,
compared with last Thursday's close of 108.85/109.05.
"Demand is quite strong... I think we may continue to see a
slight bias on the depreciation side until business resumes
fully and inflows improve," said a trader at one of the
commercial banks.
UGANDA
The Ugandan shilling UGX= is expected to be stable, with
the momentum of business activity expected to remain sluggish in
the early days of January.
Commercial banks quoted the shilling at 3,640/3,650, the
same level as last Thursday's close.
"Typically economic activity remains very sluggish in the
first week or two of January so we don't anticipate any major
movement in any direction in the next few days," said a trader
at one commercial bank, referring to the shilling.
NIGERIA
The naira NGN= is seen flat across markets next week in
the midst of thin dollar demand and weak trading activity after
the bank holiday to mark the New Year.
The naira traded at 470 on Thursday on the black market,
where it trades more freely, against last week's quote of 474
naira per dollar.
The currency was quoted at 381 per dollar on the official
market, a level set by the central bank in July. The naira sold
at 392.88 on the over-the-counter spot market NAFEX=FMDQ ,
quoted by investors and importers, in thin trade.
Nigerian banks this month started to pay out dollars for
diaspora inflows after the regulator eased money transfer rules
to try to boost forex liquidity in the country.