NAIROBI: The Kenyan and Nigerian currencies are expected to weaken in the next week to Thursday, while Ghana’s, Uganda’s and Zambia’s are seen trading steady, traders said.
Kenya
Kenya’s shilling is expected to weaken slightly, hurt by increased foreign-currency demand from oil-retailing companies.
Commercial banks quoted the shilling at 130.00/131.00 to the dollar, compared with last Thursday’s closing rate of 130.50/131.50.
“We might depreciate slightly. Most of the (dollar) demand side that had been postponing, waiting for lower (exchange) rates … will now come back to the market. We expect oil (companies) to come in,” one trader said.
Kenyan shilling stable, to firm due to tea sector dollar inflows
Nigeria
Nigeria’s naira could fall on the official market, as an estimated $1.3 billion in naira futures due to mature at the end of the month weigh on the currency.
LSEG data showed the naira at 1,530 to the dollar on the official market on Thursday, compared with 1,448 a week ago. The unit was sold at 1,550 on the parallel market on Thursday.
“Naira futures which mature at the end of the month will add pressure on the naira, increasing the demand pressures we’ve already seen,” a trader said.
“The central bank will probably need to intervene in the market to stop a sharp fall in the naira,” he said.
Ghana
American Dollar Exchange Rate