LUSAKA, Sept 19 (Reuters) - The Zambian and Ugandan
currencies may stay under pressure next week while those of
Kenya, Tanzania and Nigeria and likely to remain stable.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure against
the U.S. dollar next week due to a reduced supply of hard
currency and the need to service the nation's debt.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.1750 per dollar,
down from a close of 13.0900 a week ago.
"Interim trends seem to indicate that the local unit may
touch a new resistance level of $1/13.300 should the supply side
remain choppy," Cavmont Bank said in a note.
Zambia's external debt rose to $10.05 billion at the end of
2018, compared with $8.74 billion a year earlier, raising fears
that the country is headed for a debt crisis. The Ugandan shilling UGX= is seen trading weaker against
the U.S. dollar in the coming days as some importers start to
beef up their hard currency positions to prepare for extra
imports to meet typically high demand in the last quarter of the
year.
At 1000 GMT commercial banks quoted the shilling at
3,670/3,680, compared with last Thursday's close of 3,665/3,675.
"I anticipate a significant boost in demand from importers
because in the coming weeks they will be shipping in larger
volumes of goods for November-December shoppers," said an
independent foreign exchange trader in the capital Kampala.
KENYA
The Kenyan shilling KES= is seen stable against the U.S.
dollar in the coming week, with inflows from offshore investors
buying government debt helping to meet month-end dollar demand
amid excess liquidity in the local money market, traders said.
Commercial banks quoted the shilling at 103.75/95 per
dollar, compared with 103.70/90 at last Thursday's close.
"It's still a function of liquidity and the central bank has
been aggressive on the mop-up side... There is good demand from
all sectors," said a senior trader from one commercial bank.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady next
week due to the prevailing balance in U.S. dollar inflows and
demand in the market.
On Thursday commercial banks in the capital Dar es Salaam
quoted the local currency at an average of 2,292/2,302, the same
levels recorded a week ago.
A senior forex trader at one commercial bank said hard
currency supplies from mining, agriculture and tourism sectors
were expected to match demand from energy and manufacturing
firms.
"Due to that, we don't expect much change next week. The
shilling will remain stable and it will be in the same levels as
of this week of around 2,292/2,302," he said.
NIGERIA
Nigeria's naira NGN= is seen unchanged against the U.S.
dollar next week after the central bank stepped up its auctions
of open market securities to attract foreign inflows, traders
said.
The naira was quoted at 362 per dollar on Thursday,
unchanged from a week earlier. The currency was quoted at 360 on
exchange bureaus and at 306.35 on the official market, which is
backed by the central bank. Nigeria operates a multiple currency
regime.
Foreign inflows, which dried up last month due to low
yields, have started to come back after the central bank
increased the frequency of debt issuance. The bank launched a
300 billion naira open market (OMO) auction on Thursday.