NAIROBI, Feb 23 (Reuters) - Kenya's shilling, Uganda's
shilling and Ghana's cedi are expected to weaken against the
dollar in the week to Thursday, while Tanzania's and Nigeria's
currencies are forecast to hold steady, traders said.
KENYA
Kenya's shilling is expected to weaken further, hurt
by increased demand for dollars from the energy and
manufacturing sectors.
Commercial banks quoted the shilling at 126.15/35 per
dollar, compared with last Thursday's close of 125.70/90.
Earlier on Thursday, the shilling, which is down 2.4% so far
this year, touched a fresh low of 126.50/70 per dollar before
regaining some of its losses, Refinitiv data showed.
"We see the shilling remaining under a lot of pressure.
There is a lot of demand coming from across all sectors, and
mainly from the energy and manufacturing (sectors)," a trader at
one commercial bank.
NIGERIA
Nigeria's naira is seen holding at current levels
next week until the shortage of local notes is resolved, traders
said.
The naira has been marginally firmer on the parallel market
due to a shortage of banknotes as the central bank implemented
its cashless policy before Saturday's presidential vote, traders
said.
The naira was quoted at 755 to the dollar on the parallel
market on Thursday, compared with 756 at last Thursday's close.
It traded within a range of 460 to 462 on the official market .
"Resolving the cash shortage has become more significant for
the naira outlook than the election result — with the rate
likely to hold around current levels until naira supplies
recover," currency trading firm AZA Finance said in a note.
GHANA
Ghana's cedi is expected to remain under pressure
this week if the central bank does not step up against increased
corporate demand and reduced U.S. dollar supplies.
Refinitiv data showed the cedi trading at 12.6500 to the
dollar on Thursday, up from 12.0000 at last Thursday's close.
"Cedi lost further ground this week amid increased corporate
demand and reduced USD supply. We expect the cedi to remain
under pressure barring any strong intervention from the central
bank," said Chris Nettey, a trader at Stanbic Bank.
Absa Ghana said in a note that the USD/GHS bid offer spread
narrowed on improved liquidity on Wednesday. But the central has
provided minimal support to the spot market by selling roughly
$1 million, it added.
UGANDA
The Ugandan shilling is seen weakening as a pick-up
in appetite for dollars from both merchandise importers and
commercial banks exerts pressure on the local unit.
Commercial banks quoted the shilling at 3,730/3,740,
compared to last Thursday's close of 3,665/3,675.
"We're seeing quite substantial (dollar) appetite from
importers in various sectors," said one trader at a commercial
bank in the capital Kampala. The heightened demand was meeting
with tight inflows, the trader said.
TANZANIA
Tanzania's shilling is expected to hold steady next
week with inflows from foreign direct investments offsetting
demand of the U.S. dollar from most sectors.
Commercial banks quoted the shilling at an average of
2,336/2,346 on Thursday, compared to 2,332/2,342 recorded at
last week's close.
"Tanzania's government this week gave the green light to
construction of a $3.5bn oil pipeline transporting crude from
Uganda to the port of Tanga for export in the face of opposition
over its potential environmental impact," AZA Finance said in a
note.
"We expect the shilling to continue trading around current
levels near term."
(Reporting by George Obulutsa, Elias Biryabarema, Nuzulack
Dausen, Sofia Christensen, Chijioke Ohuocha; Compiled by
Hereward Holland; Editing by James Macharia Chege)
george.obulutsa.thomsonreuters.com@reuters.net))
