KENYA Kenya's shilling is expected to weaken as persistent dollar demand from fuel importers and the manufacturing sector exerts pressure. Commercial banks quoted the shilling at 127.50/70 per dollar, compared with last Thursday's close of 126.20/40. The shilling has gradually fallen against the dollar for well over a year, striking repeated record lows and losing more than 3% in 2023 alone, Refinitiv data show. To try to relieve pressure on the exchange rate, Kenya is asking for up to a year to pay for imported oil rather than on delivery.
ZAMBIA Zambia's kwacha is likely to lose more ground as foreign-currency inflows remain scant and demand for dollars high.
On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 20.1400 per dollar from 19.6100 at the close of business a week ago. "The local unit is anticipated to extend its losses in the short term," Access Bank said in a note.
UGANDA The Ugandan shilling is expected to be stable, with dollar inflows from commodity exporters meeting moderate demand from energy firms, manufacturers and other importers. Commercial banks quoted the shilling at 3,715/3,725, compared with last Thursday's close of 3,720/3,730.
"I see the local unit confined in a range in the short term because we don't have strong moves on either supply or demand sides," said a trader at one commercial bank, adding the shilling might change hands in 3,690-3,730 range in the coming days.
TANZANIA Tanzania's shilling is seen holding steady as dollar inflows from commodity exports offset foreign-currency demand from the energy and manufacturing sectors. Commercial banks quoted the shilling at 2,335/2,345 on Thursday, unchanged from last Thursday's close.
NIGERIA Nigeria's naira is expected to be little changed on the parallel market as a shortage of banknotes reduces foreign-currency demand, traders said. The central bank has been swapping old banknotes for redesigned ones to try to reduce the amount of cash in circulation, better control liquidity and curb inflation. But the new notes are in short supply. The naira was quoted at 755 to the dollar on the parallel market on Thursday, the same as last Thursday's close. It has traded within a range of 460 to 462 on the official market . Once the central bank makes available more new banknotes, analysts expect dollar demand to put pressure on the naira exchange rate. "As the redesigned notes begin to circulate in higher volume, we expect to see a resurgence in FX demand and a gradual depreciation of the naira," AZA Finance said in a note.
GHANA Ghana's cedi is expected to trade at current levels after reversing some of its losses last week, analysts said.
Refinitiv data showed the cedi trading at 12.50 to the dollar on Thursday, compared to 12.65 at last Thursday's close.
"We expect the cedi to hold firm against the dollar in the coming week with matched demand and supply expected in the coming sessions," said Chris Nettey, a trader at Stanbic Bank. (Reporting by Hereward Holland, Chris Mfula, Elias Biryabarema, Nuzulack Dausen, Chijioke Ohuocha and Christian Akorlie Editing by George Obulutsa and Alexander Winning)
