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KAMPALA, March 12 (Reuters) - Ugandan and Nigerian
currencies are expected to come under pressure next week, but
Tanzania's is seen firming while Kenya's holds steady.
UGANDA
The Ugandan shilling UGX= is expected to trade with a
weakening tone over the next few days as the disruption to
international trade links and tourism caused by the coronavirus
pandemic trims inflows of hard currency.
At 1110 GMT, commercial banks quoted the shilling at
3,710/3,720, compared with last Thursday's close of 3,700/3,710.
"The tourism sector is being hurt badly and the commodity
export sector ... the dollar supply side is getting squeezed,"
said a trader from a leading commercial bank.
He said the shilling would likely weaken past 3,720 in the
coming days as the global economic impact of the coronavirus
snowballs.
NIGERIA
Nigeria's naira NGN= is seen easing next week amid fears
of a possible devaluation in the wake an oil price collapse that
has worsened dollar shortages in the West African nation,
traders said.
The naira was quoted at 370 on the over-the-counter market
on Thursday, weaker than the 368 per dollar in the previous
session.
Traders said liquidity was tight amid a surge in demand. The
naira has also been weakening on the black market. However, the
central bank has been helping to keep the naira stable at 306.95
on the official market.
The impact of the oil price plunge over the weekend has
spread across asset classes in Nigeria, causing investors to
widen spreads on the bond market, sell stocks and weaken the
naira.
TANZANIA
The Tanzanian shilling TZS= is expected to gain further
next week due to the decline in demand for dollars.
Commercial banks quoted the shilling at 2,296/2,306 on
Thursday, up from 2,299/2,309 recorded a week earlier.
"The demand of dollars has declined because of slowed
importation due to coronavirus. We expect the shilling to gain
further next week as there will be no pressure to the local
currency," a trader in one of the commercial banks said.
KENYA
The Kenyan shilling KES= is seen stable in the coming
week, with inflows from non-governmental organisations helping
ease dollar demand from commercial banks and importers, traders
said.
Commercial banks quoted the shilling at 102.40/60 per
dollar, compared with 102.50/70 at last Thursday's close.
"There are a number of NGOs in the market looking to buy
shillings," said a senior trader from one commercial bank.