LUSAKA, Aug 13 (Reuters) - Zambian and Kenyan currencies are
seen facing pressure next week as those of Nigeria, Uganda and
Tanzania hold steady.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure
against the US dollar next week due to declining supply of hard
currency.
On Thursday, commercial banks quoted the currency in Zambia,
Africa's second largest copper producer, at 18.3830 per dollar
from a close of 18.2630 a week ago.
"The local unit is expected to face some headwind in its
quest to remain range bound as other key indicators point to a
weaker kwacha," Zambia National Commercial Bank said in a note.
KENYA
Kenya's shilling KES= is expected to trade weaker next
week before tax obligations to the central bank resume.
"A possible reprieve is expected when the new cash ratio
reserve cycle begins and tax obligations to the central bank
resume," a trader from a commercial bank in Nairobi said.
For the coming week analysts expect the shilling to trade at
108.00/109.00.
NIGERIA
Nigeria's naira NGN=D1 is seen flat in the week ahead in a
market that is seeing low activity owing to chronic dollar
shortages that have slowed down businesses and shifted forex
demand to the black market, traders said.
The naira NGNFX=BDCN was quoted at a low of 475 per dollar
on the unofficial market on Thursday, a level it has been this
week, while the currency was flat on the over-the-counter spot
market NAFEX=FMDQ at 385.58 naira.
Volumes on the spot market, widely quoted by investors and
importers, have been declining daily, traders say, citing the
absence of central bank's intervention or foreign inflows,
despite rising oil prices.
Dollar shortages have plagued the country for months after
sharp falls in the price of oil, Nigeria's main export.
UGANDA
The Uganda shilling UGX= is seen trading in a stable range
as mid-month tax payments by large firms curb appetite for hard
currency.
At 0914GMT commercial banks quoted the shilling at
3,670/3,680, compared to last Thursday's close of 3,677/3,687.
"Demand will be significantly limited because of the tax
payments...I expect that to possibly keep the local unit on an
even keel," said an independent foreign exchange trader in
Kampala.
He said the shilling will likely oscillate between
3,660-3,680.
TANZANIA
The Tanzanian Shilling TZS= is expected to hold steady
next week as inflows from agricultural exports and tourism are
expected to reduce pressure to the currency.
Commercial banks quoted the Shilling at 2,320/30, the same
levels as last week.
"We foresee stability around these levels in coming days,"
said Terry Karanja, a treasury associate at AZA, a Nairobi-based
FX trading firm