LUSAKA, Oct 22 (Reuters) - The Zambian, Kenyan and Ugandan
currencies are expected to face pressure against the U.S. dollar
next week while Tanzania's is likely to firm and Nigeria's flat.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure against
the dollar next week as negative sentiment arising from the
nation's high indebtedness limits hard currency inflows.
On Thursday, commercial banks quoted the currency of one of
the world's largest copper producers at 20.2000 per dollar from
a close of 20.1100 a week ago.
"I don't see any significant change as in hoping for kwacha
appreciation," independent financial analyst Maambo Hamaundu
said.
Ratings agency S&P has slashed Zambia's credit rating to
"selective default" after the government missed an interest
payment last week and announced it would suspend debt service to
external commercial creditors. Kenya's shilling KES= is expected to weaken, hurt by
increased importer dollar demand, mostly from the energy sector.
Commercial banks quoted the shilling at 108.65/85 to the
dollar, compared with last Thursday's close of 108.60/80.
"We will see the Kenya shilling remain under pressure as we
go towards the end of the month. We are expecting demand from
oil and energy sectors and general importers," a trader at one
commercial bank said.
UGANDA
The Ugandan shilling UGX= is expected to weaken, undercut
by an expected seasonal surge in demand for hard currency from
merchandise importers.
Commercial banks quoted the shilling at 3,730/3,740,
compared with last Thursday's close of 3,725/3,735.
"We have seen a modest upward trend in demand in last couple
of days, I anticipate that will play out for next couple of
weeks," said a trader from one of the commercial banks,
referring to appetite for hard currency.
He said much of the pressure was being pushed by importers
who typically exert greater demand around October-November to
pay for shipments for year-end holiday shoppers.
TANZANIA
Tanzania's shilling TZS= is expected to gain next week
because of inflows from the cashewnut exports.
Commercial banks quoted the Shilling at 2,313/23, slightly
above last week's levels of 2,315/25.
"We expect the shilling to slightly appreciate next week
because we have started seeing inflows from cashewnuts. So far,
we are not seeing pressure to the currency in upcoming weeks,"
trader at a commercial bank in Dar es Salaam said.
NIGERIA
The naira NGN= is seen unchanged next week following
disruptions to businesses triggered by protests against alleged
police brutality, prompting several states to impose
round-the-clock curfews to curb demonstrations, traders said.
The naira was weaker on the black market on Thursday at 463
per dollar from 462 a week ago. It was quoted on the official
market at 381 per dollar.
Nigeria's biggest city, Lagos, and several states were under
curfews on Wednesday as unrest rooted in anti-police protests
broke out again following a day of violence, including the
shooting of civilians by security forces. The naira traded at 386.13 on the over-the-counter spot
market NAFEX=FMDQ , widely quoted by investors and importers,
on thin volumes.