LUSAKA, Feb 25 (Reuters) - Nigerian, Zambian and Kenyan
currencies are expected to weaken again next week against the
U.S. dollar. Tanzania and Uganda's should hold steady.
NIGERIA
The naira NGN=D1 is seen easing on the spot market after
it fell 0.21% to 410.29 per dollar on Thursday, as dealers await
the result of a central bank Treasury bill auction to gauge the
level of foreign currency liquidity, traders said.
The currency has been losing ground on the spot market on
thin liquidity, with the naira touching record intra-day lows
this month and mirroring rates on the futures market, which
serves as a benchmark for fund flows into Nigeria.
The naira was quoted at 381 naira on the official market, a
level set in July and backed by the central bank. It sold at 480
naira on the black market on Thursday.
"The market is ranging between 400/430 naira and people are
getting confident to bid above 400 naira since the benchmark
one-month futures is above 419 naira, so we expect spot to trade
around those levels," one trader told Reuters.
ZAMBIA
The kwacha ZMW= is likely to face continued pressure
against the dollar going into next week due to heightened demand
for hard currency amid limited inflows.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 21.7300 per dollar,
down from a close of 21.6050 a week ago.
"The problem is around our debt levels, and unless our debt
is restructured and better managed, this is bound to continue,"
local financial analyst Maambo Hamaundu said.
Zambia and the International Monetary Fund began discussing
a loan programme and debt relief for Africa's first pandemic-era
sovereign default this month.
KENYA
Kenya's shilling KES= is likely to remain on the defensive
next week as end-of-month dollar demand from the energy sector
spills over into the beginning of March, traders said.
Commercial banks quoted the shilling at 109.70/90 to the
dollar, compared with last Thursday's close of 109.45/65.
"I expect the shilling to be weaker, in the range of 109.70
to 110.20 going into next week," said one trader. "Demand for
dollars is across the board, but it is strongest from the energy
sector, especially fuel importers."
TANZANIA
Tanzania's shilling is expected to hold steady next week as
demand for the U.S. dollar from importers is projected to match
inflows from investors and international lenders.
Commercial banks quoted the shilling at an average of
2,305/2,310 on Thursday, up from 2,311/2,329 recorded a week
earlier.
"We expect a stable outlook for the shilling, as inflows
into Tanzania – for example the loan from OFID (the OPEC Fund
for International Development), – balance increased end-of-month
dollar demand from importers," one foreign exchange trader said.
Tanzania secured a $50 million loan from OFID to finance
anti-poverty initiatives, the body announced on Friday.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
range in the coming days supported by typical end-of-month
inflows from exporters of commodities like coffee and others.
At 1029 GMT commercial banks quoted the shilling at
3,660/3,670, unchanged from last Thursday's close.
"(Dollar) inflows that come in around this time of the month
will give some support," an independent forex trader in the
capital Kampala said, adding flows would likely come in from
exporters of coffee, tea, gold and other commodities.