NAIROBI, March 11 (Reuters) - Kenya's currency is likely to
firm against the U.S. dollar next week as Zambia's and Uganda's
soften. Nigeria and Tanzania's currencies are seen holding
steady.
KENYA
The Kenyan shilling KES= is expected to edge up against
the dollar next week, driven by dollar inflows from offshore
investors into local government bonds.
The shilling has been stuck at 109.55/75 per dollar in
recent days due to lack of demand for hard currency, traders
said, adding that the range could move up to 109.00-109.50 next
week.
ZAMBIA
The kwacha ZMW= will likely continue trading under
pressure against the dollar next week due to sustained demand
for hard currency and scanty inflows.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 21.9400 per dollar
from a close of 21.9000 a week ago.
"The local unit is expected to remain bearish with demand
for the hard currency expected to persist amid erratic dollar
inflows," Zambia National Commercial Bank (ZANACO) said in a
note.
UGANDA
The Ugandan shilling UGX= is seen weakening in the next
few days under the shadow of trade disputes with Kenya.
At 0904 GMT, commercial banks quoted the shilling at
3,660/3,670 against the dollar, compared with last Thursday's
close of 3,655/3,665.
Kenya has banned imports of Ugandan maize after imposing
restrictions on shipments of other Ugandan exports including
milk and poultry products.
"I think we might start to see some players moving
aggressively on the demand side because export restrictions are
expected to hit Uganda's forex earnings," an independent foreign
exchange trader in Kampala said.
NIGERIA
The naira NGN=D1 is seen range-bound next week, supported
by a central bank incentive to try to attract more diaspora
inflows through official channels to shore up the currency on
the black market, traders said.
The currency was quoted at 484 naira on the black market on
Thursday, weaker than 480 naira last week. It traded at 408.32
naira on the spot market but remained flat on the official
market backed by the central bank at 381 naira since last July.
The central bank last week said recipients of remittances
from the Nigerian diaspora through international money transfer
operators licensed by the regulator will receive 5 naira for
every dollar imported. Tanzania's shilling is expected to hold steady next week,
underpinned by the low inflation rate and inflows from foreign
investment.
Commercial banks quoted the shilling at 2,314/2,324 against
the dollar on Thursday, unchanged from last week's close.
"We foresee a stable shilling in the coming week, helped by
the slower rate of inflation and the 25-year bond attracting
foreign investors and (hard) currency inflows," Terry Karanja, a
treasury associate at AZA, a Nairobi-based FX trading firm,
said.