DAR ES SALAAM, Jan 16 (Reuters) - Tanzania's shilling is
forecast to weaken slightly against the U.S. dollar in the next
week to Thursday, while Uganda's shilling will hold steady,
traders said.
KENYA
The Kenyan shilling KES= is expected to strengthen due to
increased inflows from the agricultural sector and diaspora
remittances amid thin importer dollar demand.
Commercial banks quoted the shilling at 100.95/101.15 per
dollar, compared with 101.40/60 at last Thursday's close.
"We're seeing increased inflows from the agricultural
sector, which has caused the market to appreciate ... we expect
the trend to continue, demand is a bit subdued at the moment,"
said a trader at a commercial bank.
UGANDA
The Ugandan shilling UGX= is expected to be stable on the
back of inflows from exports of agricultural commodities.
At 1021 GMT, commercial banks quoted the shilling at
3,675/3,685 per dollar, unchanged from last Thursday's close.
A trader at a leading commercial bank said the market
expects to receive higher inflows of dollars from exports of
coffee and other agricultural commodities as receding rains have
opened up rural transportation corridors.
"The sunny weather that has set in means commodities can
easily be transported, so that may translate into higher export
volumes and higher (FX) flows," the trader said.
TANZANIA
Tanzania's shilling TZS= is expected to weaken slightly
due to lower dollar inflows.
Commercial banks quoted the Shilling at 2,306/2,316 per
dollar on Thursday, compared with 2,300/2,310 at last Thursday's
close.
"We expect the shilling to weaken slightly next week for a
while due to shortage of dollars but it will come back to its
normal levels because businesses are starting the year," said a
trader at a commercial bank in Dar es Salaam.
NIGERIA
Nigeria's naira NGN= is forecast to be steady after
firming this week, lifted by inflows from foreign investors
seeking to buy central bank's high-yielding treasury bills,
traders said.
The naira was quoted at around 361 to the dollar on
Thursday, from 363 it fetched on the over-the-counter market
last week. It was quoted as low as 364 at the start of the year,
traders said.
The currency was quoted at 306.95 on the official market,
supported by the central bank. Nigeria operates a multiple
currency regime.
"The market is fairly liquid. Foreign investors are coming
in to buy OMO (Open Market Operation) bills," a trader said.
"The (naira) market is expecting 435 billion naira of maturity
today."
The one-year bill is trading at around 13.25%.
ZAMBIA
The kwacha ZMW= is likely to remain range-bound against
the dollar in the coming week due to matching demand and supply
for the greenback.
On Thursday, commercial banks quoted Africa's second-largest
copper producer's currency at 14.5000 from a close of 13.9000 a
week ago.
“We do not expect an easing of demand, but prospects of
improved supply will likely ensure moves are restricted,” the
local branch of South Africa's First National Bank said in a
note.