NAIROBI, Sept 12 (Reuters) - The Nigerian naira and the
Kenyan shilling are expected to be stable against the dollar in
the week ahead, backed by offshore investors into local
government securities.
NIGERIA
Nigeria's naira NGN= is likely to hold its own against the
dollar next week as the central bank steps up its sale of open
market securities to attract foreign inflows, traders said.
The naira was quoted at 362 per dollar on Thursday,
unchanged from a week earlier. The currency was quoted at 360 on
exchange bureaus and at 306.35 on the official market, which is
backed by the central bank. Nigeria operates a multiple currency
regime.
Foreign inflows, which dried up last month due to low
yields, have started to come back after the central bank
increased the frequency of debt issuance. The bank launched a
300 billion naira open market (OMO) auction on Thursday.
KENYA
The Kenyan shilling KES= could be stable against the
dollar in the coming week, supported by inflows from portfolio
investors into government debt, traders said.
Commercial banks quoted the shilling at 103.75/95 per
dollar, the same as last Thursday's closing level.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
range over the next one week as planned mid-month corporate tax
payments limit demand for hard currency from importers.
At 0851 GMT, commercial banks quoted the shilling at
3,660/3,670, compared to last Thursday's close of 3,675/3,685.
"I expect purchases of forex to me minimal because of the
usual mid month tax payments, that should keep the local unit in
a relatively stable range," said Faisal Bukenya, an independent
foreign exchange trader.
ZAMBIA
The Zambian kwacha ZMW= is expected to remain stable
against the U.S. dollar next week, supported by tightening
liquidity in the local money market.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.0750 per dollar,
from a close of 13.1100 a week ago.
"Our expectation remains unchanged, resistance is placed at
13.20," the local branch of South Africa's First National Bank
(FNB) said in a note.
TANZANIA
The Tanzanian shilling TZS= is expected to hold steady in
the days ahead, helped by subdued dollar demand from importers.
Commercial banks quoted the shilling at
2,293/2,300, unchanged from last Thursday's closing price.
"I don't see any movement on the demand side and there are
no major inflows of dollars in the market at the moment," said a
foreign exchange trader at a bank in Tanzania's commercial
capital Dar es Salaam said.