KAMPALA, Dec 19 (Reuters) - Zambia's kwacha and Kenya's
shilling are expected to strengthen against the dollar in the
next week to Thursday, while Tanzania's shilling will hold
steady, traders said.
KENYA
The Kenyan shilling KES= is expected to strengthen due to
increased inflows from diaspora remittances ahead of the holiday
season amid tightening liquidity in the local money market and a
slowdown in importer dollar demand.
Commercial banks quoted the shilling at 100.65/85 per
dollar, compared with 101.50/70 at last Thursday's close.
"We could see a stronger shilling as companies close down
for the festive season ... because of tighter market liquidity,"
a senior trader at a commercial bank said.
UGANDA
The Ugandan shilling UGX= is expected to firm on the back
slumping importer demand and removal of excess liquidity from
the money markets.
Commercial banks quoted the shilling at 3,659/3,669,
compared with last Thursday's close of 3,665/3,675.
"Importing activity is slowing down," said a trader at a
leading commercial bank, adding that most of the merchandise
needed for holiday shoppers had already been shipped in.
On Thursday, the central bank also removed an unspecified
amount of liquidity from the money markets via a seven-day repo.
The trader said this would also support to the shilling.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady due to
a slowdown in activity.
Commercial banks quoted the Shilling at 2,293/2,303 against
the dollar, the same levels as last Thursday's close.
"We expect the shilling to remain stable next week and in
the same levels as this week because there will be no more
activities in the market ... most corporates and traders will be
on holiday," a trader at a commercial bank in Dar es Salaam
said.
ZAMBIA
The kwacha ZMW= is expected to firm against the dollar as
commercial banks start implementing a central bank directive of
increasing the statutory reserve ratio to 9% from 5%, starting
on Dec. 23. On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 14.4240 per dollar,
almost the same as last week's close of 14.4200 per dollar.
"The kwacha is likely to gain as we approach the
implementation date for the Bank of Zambia directive on the
statutory reserve ratio," independent financial analyst Maambo
Hamaundu said.