KAMPALA, Oct 17 (Reuters) - Traders expect Uganda's shilling
to strengthen against the dollar next week, but predict a
weakening of the Tanzanian currency and those of Kenya and
Zambia to hold steady.
UGANDA
The Ugandan shilling UGX= is forecast to strengthen
against the U.S. dollar next week, helped by hard currency
inflows from investors buying government debt.
At 0949 GMT commercial banks quoted the shilling at
3,685/3,695 per dollar, compared to last Thursday's close of
3,680/3,690.
"The auction is expected to draw some inflows from offshore
investors and if that materialises we will likely see the
shilling keep an upward (strengthening) bias," said a trader at
a leading commercial bank.
Uganda's central bank is next week expected to auction a
total of 120 billion shillings ($32.56 million) worth of
Treasury bills of various maturities.
TANZANIA
Tanzania's shilling is likely to face pressure, with traders
forecasting more demand for U.S. dollars from importers.
Commercial banks quoted the shilling at 2,297/2,307 on
Thursday, slightly lower from 2,294/2,304 a week earlier.
"The demand side will be driven by importers, mainly oil
traders and manufacturers, while the major supply we are
expecting is from agriculture exports, especially cashew nuts
which did not happen this week," one senior commercial bank
trader said.
KENYA
The Kenyan shilling KES= is seen stable against the dollar
in due to tightening liquidity in the local money market as
banks buy shillings to meet local reserve ratio requirements,
traders said.
Commercial banks quoted the shilling at 103.65/75 per
dollar, compared with 103.70/90 at last Thursday's close.
"We've seen a slight gain for the local currency thanks to
mop up efforts by the regulator and also the beginning of a new
credit reserve ratio cycle," a senior trader from one commercial
bank said.
ZAMBIA
Zambia's kwacha ZMW= is expected to continue trading
sideways next week as tight liquidity curtails U.S. dollar
demand from importers and buyers.
On Thursday, commercial banks quoted the currency of
Africa's No.2 copper producer at 13.1700 per dollar from a close
of 13.1500 a week ago.
"The local unit will likely remain range bound with limited
moves to the downside should liquidity remain tight," Cavmont
Bank said in a note.