LUSAKA, Sept 10 (Reuters) - Zambia and Nigeria's currencies
are expected to come under pressure against the greenback in the
coming week as Uganda and Tanzania's hold steady.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure against
the U.S. dollar next week as a shortage of hard currency driven
by agricultural and energy sector imports persists.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 19.7500 per dollar
from a close of 19.5610 a week ago.
"The government is importing farming inputs like fertilizer
as well as crude oil to feed Indeni," economist Chibamba Kanyama
of the brokerage Bridges said, referring to the local refinery.
NIGERIA
Nigeria's naira NGNFX=BDCN is seen easing on the black
market in the week ahead as pressure builds on the currency,
despite the central bank's efforts to clear backlog demand,
traders said.
The naira was quoted at 445 per dollar on the unofficial
market on Thursday, weakening from 435 it reached last week
after the central bank resumed forex sales to investors stuck in
the country following a coronavirus-induced oil price collapse.
The currency traded at 386.57 on the over-the-counter spot
market NAFEX=FMDQ on volumes in excess of $40 million.
Volumes on the spot market, widely quoted by investors and
importers, had been declining daily, following the absence of
foreign inflows and inadequate central bank interventions.
Oil prices dipped on Thursday although the Brent benchmark
stayed above $40 a barrel. Dollar shortages have
plagued the country for months after sharp falls in the price of
oil, Nigeria's main export.
UGANDA
The Ugandan shilling UGX= is seen holding in a stable
range in the coming days as preparations by firms to pay
mid-month taxes curb demand for dollars.
Commercial banks quoted the shilling at 3,700/3,710,
compared with last Thursday's close of 3,680/3,690. The shilling
is expected to trade in the 3,685-3,710 range in coming days.
"I would expect activity by corporates on the demand side
will be pretty thin minding mid-month tax obligations are around
the corner," said a trader from one commercial bank.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady as
dollar demand from manufacturers and oil importers matches
inflows from agricultural exports.
Commercial banks quoted the shilling at 2,315/2,325, the
same level as last Thursday's close.
"We foresee the shilling remaining steady in the coming week
as an increase in manufacturing and oil importers' dollar demand
is balanced by continued agricultural inflows," Terry Karanja, a
treasury associate from AZA, a Nairobi-based forex trading firm
said.
KENYA
The Kenyan shilling KES= , which was trading at 108.35/55
on Thursday, is expected to take its cue from the central bank
in the week ahead.
"It just boils down to the central bank. If they were to
come and sell (dollars), it would strengthen," said a currency
trader at a commercial bank.
The shilling closed last Thursday's trade at 108.25/45 per
dollar.
Traders said next week's auction of 50 billion shillings
worth of government bonds was unlikely to move the market, since
offshore investors usually prefer to participate in the auctions
of infrastructure bonds, rather than ordinary ones.