KENYA Kenya's shilling is expected weaken, but at a less precipitous rate as market volatility continues to ease following the revival of interbank trading last month. Commercial banks quoted the shilling at 134.00/20 to the U.S. dollar on Thursday, compared with last Thursday's close of 133.40/60. Kenyan President William Ruto said on Tuesday he expected the shilling to strengthen to below 120 per dollar in the next couple of months, citing an oil import deal that would cut demand for dollars. Traders said the local unit would likely be bolstered by the oil deal when it comes into affect in the coming weeks but that the president's exchange rate projection was unrealistic. "The opening of the interbank market not only provides liquidity but is helping the shilling find its real level in an orderly environment," said one trader at a commercial bank.
UGANDA The Ugandan shilling is seen trading broadly stable, supported by mid-month tax obligations that could limit appetite for hard currency, traders said.
Commercial banks quoted the shilling at 3,730/3,740 to the dollar, compared to last Thursday's close of 3,745/3,755.
"The main dynamic that will drive the direction of the shilling in the coming week will be mid-month tax obligations," said an independent foreign exchange trader in the capital Kampala.
The shilling will likely swing in the 3,700-3,740 range, he said.
ZAMBIA Zambia's kwacha is likely to be range-bound next week due to reduced foreign-currency demand and steady dollar inflows. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 18.6400 per dollar, stronger than 19.9200 at the close of business a week ago. "The kwacha is forecasted to exhibit forms of stability in the near term," Access Bank said in a note.
GHANA
Ghana's cedi is expected to weaken due to an uptick
in dollar demand from energy and manufacturing companies.
Refivitiv Eikon data showed the cedi trading at 11.1000 to
the dollar on Thursday, compared to 10.6000 at last Thursday's
close.
"The dollar is likely to continue its rebound against the
cedi in the coming week. We've seen FX demand from local
corporates ... return in the last couple of sessions following a
period of lacklustre demand," said Andrew Akoto, head of trading
at Absa Bank.
Demand for forex dropped earlier this month as market
players watched government efforts to secure a $3 billion loan
from the International Monetary Fund, which still requires Board
approval.
(Reporting by Hereward Holland, Elias Biryabarema, Christian
Akorlie, Chris Mfula; Editing by Anait Miridzhanian and
Alexander Winning)
