The Kenyan, Nigerian and Zambian currencies are expected to be broadly unchanged against the dollar in the next week to Thursday, while Ghana’s may gain, traders said.
KENYA
Kenya’s shilling is seen stable as dollar appetite from the energy sector matches inflows from remittances and tea exports.
Commercial banks quoted the shilling at 129.00/129.40 to the dollar, unmoved from last Thursday’s close.
NIGERIA
Nigeria’s naira is also expected to trade around current levels.
The naira was quoted at 1,472 to the dollar on the official market on Thursday and was changing hands at 1,490 to the dollar in street trading .
“We have seen the currency trade at around 1,465/1,470 levels this week. With this, we are getting signals that the central bank is comfortable … where the market is right now,” one trader said.
ZAMBIA
Zambia’s kwacha is likely to be steady as companies sell hard currency to pay taxes.
On Thursday the kwacha was quoted at 23.18 per dollar from 23.99 a week ago.
“Withholding tax is due next week and this should support the local currency,” a financial analyst said.
GHANA
Ghana’s cedi is seen strengthening due to dollar inflows and central bank auctions.
LSEG data showed the cedi trading at 12.30 to the dollar on Thursday, compared to 12.45 at last Thursday’s close.
“The cedi is likely to post some gains against the dollar on the back of improved interbank liquidity, following the central bank’s announcement of plans to sell up to $1.15 billion in market interventions in October,” said Andrews Akoto, head of trading at Absa Bank Ghana.
“We expect firm (dollar) demand from the energy, services and manufacturing sectors to be offset by offshore FX inflows and a liquid local interbank market,” he added.
