LUSAKA, Nov 12 (Reuters) - Zambian and Kenyan currencies are
likely to trade on the back foot against the U.S. dollar next
week while Tanzania, Uganda and Nigeria's are seen holding
steady.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure against
the dollar next week as demand for hard currency continues to
outweigh supply.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 20.8650 per dollar,
down from a close of 20.6000 a week ago.
"Demand for dollars is still high and we have very limited
inflows," one commercial bank trader said.
KENYA
The Kenyan shilling KES= may face a depreciation risk in
the coming days as demand pressures from importers persist,
while the central bank may be reluctant to intervene as reserves
fall, traders said.
At 0739 commercial banks quoted the shilling at 108.95/15
compared to last Thursday's close of 108.80/109.00.
"There's a bit more demand than supply, it means there's
pressure on the currency," said a trader from one of the
commercial banks.
"Maybe the central bank could save it but it has a limit
because the reserves are getting depleted. You don't want to
sell all reserves to support currency."
TANZANIA
Tanzania's Shilling TZS= is expected to hold steady next
week as income from cashew nut exports continues to help match
U.S. dollar demand in the market.
Commercial banks quoted the Shilling at 2,314/24 on
Thursday, the same levels recorded at last week's close.
"We expect the Shilling to stabilise next week by trading at
the same levels as this week. Since we are in the cashew nut
season, we expect cashews inflows to continue stabilising the
currency as they have been in the past three weeks,” a trader in
one of the commercial banks in the commercial capital, Dar es
Salaam, said.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
position in the coming days as some firms reserve a part of
their local currency holdings to meet mid-month tax obligations.
At 0855 GMT, commercial banks quoted the shilling at
3,697/3,707 compared to last Thursday's close of 3,730/3,740.
"With limited (shilling) liquidity, I see the unit stuck
around 3,700 region," said a trader at one of the commercial
banks.
The local unit has mostly oscillated between 3,680-3,720 in
recent months.
NIGERIA
The naira NGN= is expected to be unchanged next week on
hopes that the rising price of oil price, Nigeria's main export,
will boost foreign exchange supplies to an economy struggling
with dollar shortages, traders said.
The naira weakened slightly on the black market on Thursday
to 466 per dollar from 465 a week ago. It was quoted on the
official market at 381 per dollar, a level it has been at since
July.
On Wednesday, benchmark Brent crude oil rose to a more than
two-month high above $45 a barrel on hopes for an effective
COVID-19 vaccine. The naira traded at 386.10 on the over-the-counter spot
market NAFEX=FMDQ , widely quoted by investors and importers,
on thin volumes.