LAGOS, May 21 (Reuters) - Nigeria's currency is expected to
come under pressure on the black market next week, with Uganda's
seen firming and Kenya and Zambia's holding stable.
NIGERIA
Nigeria's naira is seen weakening on the black market as
dollar shortages at official sources cause investors and
importers to channel demand to the parallel market, traders
said.
The black market naira NGNFX=BDCN traded on the streets
fell to 460 against the dollar on Thursday, reflecting the
build-up of demand. The naira was quoted at 450 last week on the
unofficial market after a lockdown was eased.
Dollar demand from investors and importers has ballooned
with payment obligations accumulating amid hard currency
shortages triggered by the oil price crash.
The Nigerian central bank governor has warned domestic and
foreign investors against patronising the black market, saying
it was helping to overheat that market. The naira is seen rangebound on the official NGN=D1 and
over-the-counter spot NAFEX=FMDQ markets, traders say.
UGANDA
The Ugandan shilling UGX= is seen trading firmer helped by
month-end inflows from some charities looking to pay salaries.
At 1002 GMT commercial banks quoted the shilling at
3,785/3,795, compared to last Thursday's close of 3,782/3,792.
"Because of the coronavirus related job losses the volumes
(of inflows) will probably be limited but whatever comes in will
lend a little support," a trader at a commercial bank in the
capital told Reuters.
KENYA
The Kenyan shilling KES= is seen stable in the coming week
with markets eyeing a resumption of inflows from remittances and
horticulture exports amid month-end dollar demand from
merchandise importers, traders said.
Commercial banks quoted the shilling at 106.75/95 per
dollar, compared with 106.60/80 at last Thursday's close.
"Horticulture exporters are talking of opening up towards
June, once those inflows check in it will support the shilling,"
said a senior trader from one commercial bank.
ZAMBIA
The kwacha ZMW= is expected to hold steady against the
U.S. dollar next week supported by month-end hard currency sales
and a decline in imports.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 18.0440 per dollar
from 18.2630 at close a week ago.
"It should continue trading within the same 18-18.6 levels
even going into next week," independent financial analyst Maambo
Hamaundu said.