LUSAKA, Nov 28 (Reuters) - Zambia's currency is expected to
remain on the back foot against the U.S. dollar next week as
those of Nigeria, Kenya and Uganda hold steady.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure
versus the U.S. dollar next week due to continued demand for
hard currency to service debt and meet energy sector imports.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 14.5750 per dollar,
down from a close of 14.1850 a week ago.
"It is likely to remain within current levels due to hard
currency demand for debt servicing, fuel imports and electricity
imports," independent financial analyst Maambo Hamaundu said.
NIGERIA
Nigeria's naira NGN= is expected to be stable next week
supported by exporters after hitting resistance around the 362
level as businesses wind down activities ahead of year-end,
traders said.
The naira was quoted between 362 and 362.50 this week on the
over-the-counter market, holding within this month's range, one
trader said.
The currency was quoted at 307 on the official market,
supported by the central bank. Nigeria operates a multiple
currency regime.
Traders said importers were not willing to buy the dollar
above the current range, which is helping keep the naira stable,
with liquidity thin as foreign inflows dwindle due to a fall in
debt yields.
KENYA
The Kenyan shilling KES= is also expected to be stable in
the coming week due to inflows from diaspora remittances and
tightening liquidity in the local money markets offsetting
end-month dollar demand from the energy sector, traders said.
Commercial banks quoted the shilling at 102.65/85 per
dollar, compared with 101.25/45 at last Thursday's close.
"We could see receding pressure from importers...diaspora
remittances are offering good support." said a trader from one
commercial bank.
UGANDA
The Uganda shilling UGX= is seen trading in a stable
range, mostly supported by inflows of hard currency from
non-governmental organisations to meet operational expenses.
Commercial banks quoted the shilling at 3,695/3,705,
compared to last Thursday's close of 3,680/3,690.
"Some conversions are expected from NGOs, some will be
paying salaries while others will be paying some outstanding
obligations before the year closes," said a trader at a leading
commercial bank.
He said the shilling was likely to trade in the 3,675-3,700
range against the dollar over the next one week.