LUSAKA, Aug 27 (Reuters) - The Zambian and Kenyan currencies
are likely to face pressure next week, while Tanzania's is
expected to strengthen slightly.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure
against the U.S. dollar next week owing to demand pressure and
negative sentiment after the abrupt removal of the central bank
governor.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 19.4000 per dollar
from a close of 19.0370 a week ago.
"There is negative sentiment arising from the abrupt
termination of the central bank governor's contract coupled with
rising demand for dollars," independent financial analyst Maambo
Hamaundu said.
Zambian President Edgar Lungu on Saturday summarily
dismissed central bank governor Denny Kalyalya and replaced him
with former deputy finance minister Christopher Mvunga.
KENYA
The Kenyan shilling KES= is expected to stay on the
defensive next week as dollar demand remains robust but inflows
lacklustre.
"I don't expect much in terms of inflows, and there will be
quite some demand in the first week of the month especially from
the energy sector," one commercial bank trader in Nairobi said.
Analysts anticipate the shilling to be rangebound next week,
trading around 108.20/60, compared to Wednesday's close of
108.15/35.
NIGERIA
The Nigerian naira NGN=D1 is seen flat in the coming week
after the central bank reeled out new measures targeted at
exporters to try to boost dollar liquidity on the currency
market, traders said.
The naira NGNFX=BDCN was quoted at 477 per dollar on the
unofficial market on Thursday, a level it reached a week ago.
The currency was traded at 386.15 on the over-the-counter
spot market NAFEX=FMDQ on volumes in excess of $14.5 million.
Dollar shortages have plagued the country for months after
sharp falls in the price of oil, Nigeria's main export.
The central bank also directed lenders to stop processing
letters of credit for imports for third-party suppliers or
brokers with immediate effect, another measure to try to curb
demand and stabilise the currency.
TANZANIA
Tanzania's shilling TZS= is expected to gain slightly
next week due to anticipated inflows of dollars from
agricultural commodity exports.
Commercial banks quoted the shilling at 2,315/2,325 on
Thursday against the dollar, the same levels recorded a week
ago.
"We project a stable shilling in the coming week, supported
by inflows from commodity exports including coffee, cashew nuts,
cotton and gold, matching demand for dollars," a senior forex
trader said.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
range over the coming days helped by hard currency inflows from
exports of commodities like coffee.
At 1011GMT commercial banks quoted the shilling at
3,670/3,680, compared to last Thursday's close of 3,667/3,677.
"Inflows from coffee are on the upswing and we anticipate
they continue to provide support in the short term," said an
independent foreign exchange trader in the capital Kampala.
The latest coffee export figures show the east African
country's shipment of the beans rose by 17.2% year-on-year in
July and was the highest monthly shipment since 1991.