LUSAKA, Feb 6 (Reuters) - Zambian and Ugandan currencies are
likely to trade on the back foot next week while those of
Tanzania, Kenya and Nigeria are expected to hold steady.
ZAMBIA
The kwacha ZMW= is likely to come under pressure next
week, largely driven by sentiment after tax payments due this
coming Monday.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 14.6200 from a close
of 14.7560 a week ago.
"With copper trading much lower, sentiment will naturally be
bearish," the Zambian branch of South Africa's First National
Bank (FNB) said in a note.
UGANDA
The Ugandan shilling UGX= is expected to weaken as some
foreign-owned firms buy dollars as they prepare to pay last
year's dividends.
Commercial banks quoted the shilling at 3,670/3,680,
compared to last Thursday's close of 3,673/3,683.
"We anticipate that firms preparing to pay dividends will be
buying hard currency starting this month," said a trader at a
leading commercial bank.
"That demand pressure will likely weaken the local unit."
TANZANIA
Tanzania's shilling TZS= is expected to hold steady next
week due to the balance between the supply of dollars and demand
in the market.
Commercial banks quoted the shilling at 2,305/15, the same
levels recorded a week earlier.
"We expect the shilling to be more stable next week in the
same levels as this week with supply of dollars matching the
demand," a trader in one commercial bank in Dar es Salaam said.
KENYA
The Kenyan shilling KES= is seen stable in the coming week
with inflows from remittances and offshore investors buying
government paper matching dollar demand from merchandise
importers, traders said.
Commercial banks quoted the shilling at 100.30/50 per
dollar, compared with 100.55/75 at last Thursday's close.
"Market looks well balanced, demand and supply are well
matched ... a lot of importers are holding off because they
think the shilling might strengthen further," said a senior
trader from one commercial bank.
NIGERIA
Nigeria's naira NGN= is seen stable next week after it
eased due to scarce U.S. dollar inflows as weak sentiment
worsened by fears that the coronavirus outbreak would hit
Chinese demand, traders said.
The naira eased to around 364 per dollar on the
over-the-counter market, a level it traded since last week. The
currency was quoted at 361 just before the effects of the virus
outbreak hit the local market.
Traders said the market has been on bid with little supply
as central bank treasury auctions designed to attract foreign
investors fail to lift dollar liquidity. The bank has been
helping to meet some demand, keeping the naira stable.
"There's risk aversion following the impact of coronavirus
on oil prices. This is not a plus for us at this time," one
trader said.