KAMPALA, Dec 10 (Reuters) - Uganda's currency will likely
gain against the U.S. dollar next week, while Kenya's and
Zambia's are expected to be stable and Nigeria's Naira
rangebound.
UGANDA
The Ugandan shilling UGX= is seen firmer as big importers,
such as the manufacturing sector, slow activities ahead of the
year-end.
At 0820 GMT commercial banks quoted the shilling at
3,675/3,685, stable from last Thursday's close.
"We expect to see demand from most big importers thinning
out as traditionally happens around this time," a trader at one
of the commercial banks in the capital Kampala said.
As importer appetite slows, he predicted the local currency
could post some modest gains.
KENYA
The Kenyan shilling KES= is expected to remain stable in
the week ahead, due to low dollar demand as companies close
ahead of the festive season.
The shilling was trading at 111.40/111.60 on Thursday, down
from 111.10/30 at the end of trading a week earlier.
"Most people are probably closing businesses next week. I
suspect we might remain at these levels. Nothing much is
expected," said a trader at one commercial bank.
ZAMBIA
The kwacha ZMW= is likely to hold steady against the
dollar, supported by foreign currency conversions by companies
preparing to pay taxes due next week.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 21.0450 per dollar
from 21.0175 at the close of business a week ago.
"The local unit should continue trading within the current
levels because there are various tax payments due next week,"
one commercial bank trader said.
NIGERIA
The naira NGN= is seen trading within a range next week
across markets after the currency received a boost from the
central bank's easing of restrictions on diaspora remittances.
The naira firmed to 476 per dollar on the black market on
Thursday from 478 previous session and recovering from a 3-1/2
year low of 500 naira it hit last week on the unofficial market,
where the currency trades freely.
The currency was quoted at 381 per dollar on the official
market, a level set by the central bank in July. The naira sold
at 392.79 on the over-the-counter spot market NAFEX=FMDQ ,
quoted by investors and importers, in thin trade.
The World Bank said on Thursday that Nigeria's steps to
unify its multiple exchange rates have not been enough, adding
that remittances this year were likely to fall to 2015 levels of
$20.2 billion from $26.4 billion last year.