Feb 2 (Reuters) - Kenya's shilling and Zambia's kwacha
are forecast to weaken against the dollar in the week to
Thursday, while Nigeria's, Tanzania's, Uganda's and Ghana's
currencies will be steady, traders said.
KENYA
Kenya's shilling is expected to weaken next week as
continuing demand for dollars from importers in the oil market
weigh on the local currency.
On Thursday, commercial banks quoted the shilling at
124.50/70 per dollar, compared with last Thursday's close of
124.25/45.
"The shilling is expected to continue to weaken in the
coming week and month due to... limited supply of dollars," one
trader at a commercial bank said.
Refinitiv data showed the shilling struck a new all-time low
on Thursday.
ZAMBIA
The kwacha is likely to remain under pressure against
the dollar next week as demand for hard currency continues to
outweigh supply due to loss of investor confidence brought about
by delays in debt restructuring.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 19.3600 per dollar
from 19.1100 at the close of business a week ago.
Zambia's central bank will on Feb 13 hike by 2.5 percentage
points the proportion of deposit liabilities that commercial
banks keep as cash with it on both local and foreign currency
deposits, it said in a letter to commercial banks on Wednesday.
"The market has been characterised by weak foreign exchange
supply amidst strong demand by market players," the central bank
said.
The adjustment to the statutory reserve ratio is aimed at
addressing volatility in the exchange rate and safeguarding
stability of the foreign exchange market, it said.
NIGERIA
Nigeria's naira is seen broadly stable on the
parallel market in the coming week as a shortage of country's
newly launched currency notes limit activity on the unofficial
market, traders said.
The naira was quoted at 755 to the dollar on the parallel
market on Thursday, compared with 753 at last Thursday's close.
It traded within a range of 460 to 462 on the official market .
The launch of the new notes could keep the naira stable
around current levels until the new bills go into full
circulation, currency trading firm AZA Finance said.
"We anticipate a return to gradual depreciation as normal
demand for FX returns."
TANZANIA
The Tanzanian shilling is expected to remain stable
against the dollar next week as the country looks for increased
investments in its agriculture sector.
Commercial banks quoted the shilling at 2,333/2,343 on
Thursday compared with an average of 2,332/2,342 recorded on
last week's close.
"President Samia Suluhu Hassan spent much of last month
overseas seeking investment in the country's agriculture value
chain… given the prospects of increased investment, we expect
the shilling to remain stable against the dollar in the week
ahead," said Kristine Van Helsdingen, a currency dealer at AZA
Finance.
UGANDA
The Uganda shilling is seen trading in a stable
range, mostly underpinned by inflows from companies preparing
for crude oil production and subdued appetite for hard currency
from importers.
Commercial banks quoted the shilling at 3,680/3,690,
compared with last Thursday's close of 3,675/3,685.
"Demand activity from the importer side has been sagging
while on the other hand we're seeing elevated inflows from
energy investors," an independent foreign exchange trader in
capital Kampala said, referring to companies involved in
Uganda's planned crude oil production.
Activity in the sector has accelerated as the country aims
to meet its target of starting crude oil production in 2025.
GHANA
Ghana's cedi is expected to remain stable in the
coming week, after it posted some marginal gains amid demand
slowdown and discussions with bondholders on the domestic debt
restructuring.
Refinitiv data showed the cedi trading at 12.00 to the
dollar on Thursday, the same as last Thursday's close.
Ghana has extended the deadline to register for its domestic
debt exchange programme for a fourth time to Feb. 7 to allow for
new agreed terms to be finalised and finish discussions with
other bondholders.
"We expect the cedi to hold its ground against the dollar
into next week, ahead of the new DDEP (Domestic Debt Exchange
Programme) deadline", said Chris Nettey, a trader at Stanbic
Bank.
(Reporting by Bhargav Acharya, Chris Mfula, Nuzulack Dausen,
Elias Biryabarema; Anait Miridzhanian and Chijioke Ohuocha;
editing by James Macharia Chege)
