NAIROBI, May 7 (Reuters) - Kenyan and Ugandan currencies are
likely to firm next week as Nigeria's comes under pressure and
Zambia and Tanzania's hold steady.
KENYA
The Kenyan shilling KES= is expected to strengthen due to
inflows from the diaspora and an emergency International
Monetary Fund (IMF) loan to support the economy against the
impact of the novel coronavirus outbreak, traders said.
Commercial banks quoted the shilling at 106.00/20 per U.S.
dollar, compared with 107.20/40 at last Thursday's close.
"We know that there is support coming in (from the IMF)
because of COVID-19, it would help boost reserves...we expect
diaspora remittances and horticulture to pick up as countries
ease lock-down measures," said a senior trader from one
commercial bank.
UGANDA
The Ugandan shilling UGX= is expected to firm after the
IMF on Wednesday approved a $491 million emergency loan to help
Uganda with the economic fallout from the novel coronavirus.
Commercial banks quoted the shilling at 3,795/3,805,
compared to last Thursday's close of 3,815/3,825.
"The loan is welcome news for the markets ... there might be
some lag before it's disbursed but I expect an immediate
positive sentiment that will support the shilling," said one
trader from a commercial bank.
NIGERIA
Nigeria's naira NGNFX=BDCN is seen easing next week after
the central bank weakened the currency on the futures market
offered mostly to foreign investors, traders said.
The naira, however, firmed on the over-the-counter spot and
black markets this week after the central bank resumed dollar
sales to help individuals with dollar expenses abroad and
importers resume economic activities following a phased easing
of a coronavirus lockdown.
But the bank is yet to sell dollars to foreign investors
seeking to exit naira assets, with traders putting a backlog of
demand at between $1.5 billion to $1.8 billion.
The currency was quoted at 386.93 naira per dollar on the
spot market, mostly used by foreign investors and exporters.
ZAMBIA
The kwacha ZMW= is likely to remain range-bound against
the U.S. dollar next week with minimal market activity as the
impact of COVID-19 hits production.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 18.3630 per dollar
from 18.5760 at the close of business a week ago.
"It should remain within the 18-18.5 range per dollar. Some
companies have closed and this has a bearing on the kwacha,"
independent financial analyst Maambo Hamaundu said.
TANZANIA
Tanzania's shilling TZS= is also expected to hold steady
next week, traders said.
Commercial banks quoted the shilling at 2,309/19 on
Thursday, the same levels as a week earlier.
"It is highly likely the shilling will remain stable next
week. The demand and supply of dollars will almost match," a
trader in a commercial bank said.