ZAMBIA The kwacha is likely to continue trading weaker against the dollar next week due to heightened demand for hard currency from importers of fuel, medicines and agricultural inputs amidst sluggish inflows. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 19.6100 per dollar from a close of 19.4600 a week ago. Bank of Zambia governor Denny Kalyalya said on Wednesday that dollar providers had become more characterized on the demand side as they divest from the domestic market. "This is principally due to tighter global financial conditions, negative sentiments associated with the protracted debt restructuring negotiations and uncertainty around the treatment of non-resident holders of government securities," Kalyalya said at a media briefing. TANZANIA Tanzania's shilling is expected to hold steady next week with inflows from normal business operations helping to cushion the demand for the U.S. dollar from energy and manufacturing sectors. Commercial banks quoted the shilling at 2,333/2,343 on Thursday, compared to an average of 2,335/2,345 recorded last week's close.
"The Bank of Tanzania said it will continue to use monetary policy to protect the country against inflationary pressures…urging the private sector to increase exports to help boost dollar inflows," Kristine Van Helsdingen, a trader at AZA Finance, said.
"We expect the shilling to be steady in the week ahead as the central bank remains active in the FX market." (Reporting by Hereward Holland, Christian Akorlie, Chris Mfula and Nuzulack Dausen; Compiled by Bhargav Acharya; Editing by Editing by James Macharia Chege)
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