NAIROBI, Oct 1 (Reuters) - Kenya's and Uganda's shillings
and Zambia's kwacha are expected to weaken against the dollar in
the next week to Thursday, traders said.
KENYA
Kenya's shilling KES= is expected to weaken due to
increased importer demand originating from the government's
easing of COVID-19 restrictions, while central bank dollar sales
would offer support.
Commercial banks quoted the shilling at 108.40/60 to the
dollar, compared with last Thursday's close of 108.35/55.
"There is still pressure on the shilling going forward. The
announcement for relaxation of COVID-19 restrictions, the
economy will open up and since we are an import-based economy,
we will need more importation," a trader at one commercial bank
said.
UGANDA
The Ugandan shilling UGX= is expected to weaken due to
increased importer demand following the country's re-opening of
its international borders.
Commercial banks quoted the shilling at 3,710/3,720,
compared to last Thursday's close of 3,700/3,710.
"We anticipate demand from importers and other business
travellers should climb after the lifting of international
travel ban," said a trader at one commercial bank.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady next
week supported by inflows from agricultural exports.
Commercial banks quoted the shilling at 2,315/2,325 on
Thursday, the same level as last week.
“We expect the Shilling will continue to be stable next week
because the cashew nut season is starting and it will contribute
to inflows to match with the current demand of the U.S. dollar,”
a trader in one of the commercial banks in Dar es Salaam said.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure as
demand for dollars continues to outmatch supply.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 20.000 per dollar
from a close of 19.9000 a week ago.
"The short dollar supply on the market continues to exert
pressure on the local unit," Zambia National Commercial Bank
(ZANACO) said in a note.