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WEEKAHEAD-AFRICA-FX-Kenyan, Zambian currencies seen under pressure

Published 26/11/2020, 13:34
© Reuters.
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USD/TZS
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NAIROBI, Nov 26 (Reuters) - Kenya's and Zambia's currencies
are expected to come under pressure versus the U.S. dollar next
week while Tanzania's and Uganda's hold steady.

KENYA
Kenya's shilling KES= is expected to continue to weaken
against the dollar on the back of demand from importers across
all sectors and slow inflows from horticulture exporters,
agriculture and remittances.
Commercial banks quoted the shilling at 109.95/110.15 to the
dollar, compared with last Thursday's close of 109.75/109.95.
"Demand will continue from importers until the end of the
month impacting the shilling due to end of month obligations,"
said a trader at one commercial bank.

ZAMBIA
The kwacha ZMW= will likely remain weak versus the dollar
next week as demand for hard currency continues to exceed suppy.
On Thursday, commercial banks quoted the currency of one of
the world's largest copper producers at 20.9700 per dollar from
a close of 20.9204 a week ago.
"The Local unit is still expected to remain bearish as
demand continues to outweigh supply," one commercial bank trader
said.

TANZANIA
Tanzania's shilling TZS= is expected to hold steady versus
the dollar as inflows from agricultural exports offset pressure
on the local currency from demand for manufacturing and energy
imports.
Commercial banks quoted the shilling at 2,314/24 on
Thursday, the same levels recorded at last week's close.
"We expect FX (foreign exchange) inflows from cashews and
other farming products to continue supporting the shilling," a
trader at one of the FX trading firms said.

UGANDA
The Ugandan shilling UGX= is seen in a stable range
against the dollar in the coming days, underpinned by some
inflows from coffee exporters.
At 1001 GMT commercial banks quoted the shilling at
3,695/3,705, compared to last Thursday's close of 3,700/3,710.
"We have been receiving some healthy flows from coffee
exporters, which I think will continue, as the season is on,"
said a trader at one of the commercial banks.

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