NAIROBI, March 5 (Reuters) - The Kenyan shilling is seen
depreciating on the back of a central bank move to purchase hard
currency to beef up reserves while Zambia's Kwacha might claw
back losses as debt payment pressures ebb.
KENYA
The Kenyan shilling KES= is seen weaker in the coming week
as banks shore up their hard currency positions after the
central bank announced a dollar purchase plan, traders said.
At 1101 GMT, commercial banks quoted the shilling at
102.50/70 per dollar, compared with 100.90/101.10 at last
Thursday's close.
"We're seeing a lot of panic buying ... let's see how they
(CBK) contain it, the buck now stops with them," said a senior
trader from one commercial bank.
This week the central bank announced it would start
purchasing $100 million every month between March and June to
help beef up its foreign reserves. The announcement triggered
the local currency to depreciate to a three-month low.
The Ugandan shilling UGX= is seen trading with a weakening
bias on the back of foreign-owned firms buying hard currency to
meet last year's dividend payout obligations.
At 0920 GMT commercial banks quoted the shilling at
3,705/3,715, compared with last Thursday's close of 3,710/3,720.
"We're in the dividends season. There's a bit of pressure
weighing on the shilling and that will continue for the next few
weeks," Faisal Bukenya, managing director at Pay Uganda, an
independent foreign exchange dealer in Uganda's capital Kampala
told Reuters.
He said the local currency would likely oscillate in the
range of 3,700-3,725 in the coming week.
TANZANIA
The Tanzanian shilling TZS= is expected to hold steady
next week due to receding demand pressure for hard currency from
merchandise importers as the disruption of travel by the
coronavirus epidemic hobbles international trade.
Commercial banks quoted the shilling at 2,299/2,309 on
Thursday, up from an average of 2,305/2,315 recorded last week.
"Import activities ... have gone down due to the
coronavirus, which has reduced pressure to the shilling," a
trader in one of the commercial banks in Dar es Salaam told
Reuters.
ZAMBIA
The Zambian kwacha ZMW= is expected to recover some of its
losses in the coming week as pressure arising from servicing
debt temporarily eases.
On Thursday commercial banks quoted the currency of Africa's
second-largest copper producer at 15.1750 per dollar, down from
a close of 14.9500 a week ago.
"It could get back below 15 per dollar ... because the due
payment was made," independent financial analyst Maambo Hamaundu
said.
NIGERIA
Nigeria's naira NGN= is seen easing next week amid
expectations the worldwide coronavirus outbreak will worsen
dollar liquidity shortages in the West African country, traders
said.
A few trades were carried out on the naira at 366.5 on the
over-the-counter market on Wednesday, weaker than the 365 level
at which the currency has been quoted for over a week.
Traders said liquidity is tight and that it is becoming
harder to meet demand. The central bank has been helping to keep
the naira stable at 307 on the official market but demand is
rising.
Foreign inflows into the Africa's biggest economy dried up
after government bond yields slowed while a drop in oil prices
triggered by the coronavirus outbreak has exacerbated hard
currency supply worries.