KENYA Kenya's shilling is expected to weaken due to increased demand for dollars from oil retailing companies and general merchant importers. Commercial banks quoted the shilling at 135.15/35 per dollar compared with last Thursday's close of 134.40/60. The shilling has been losing ground since mid-2021 and continues to reach new lows against the dollar. The last record slump was 135.20/40 on April 19, according to Refinitiv data. "Dollar demand has overpowered supply. The usual culprits (demanding dollars) are oil marketers and general importers. It's geared towards shilling weakening," a trader at one commercial bank said.
GHANA Ghana's cedi is expected to remain steady this week following central bank interventions that increased dollar supplies. Refinitiv Eikon data showed the cedi trading at 11.6000 to the dollar on Thursday, compared with 11.0000 at last Thursday's close. Traders expect the currency to remain stable in the context of negotiations on debt restructuring that should pave the way for a $3 billion loan from the International Monetary Fund, which still needs Board approval. "We expect the news from the negotiations to set the tone for the direction of the cedi in the coming week," said Chris Nettey, head of trading at Stanbic Bank.
UGANDA The Ugandan shilling is seen trading in a stable range in coming days, with end-month inflows from charities and commodity exporters offering some support, traders said. At 1142 GMT, commercial banks quoted the shilling at 3,730/3,740, unchanged from last Thursday's close.
A trader at one commercial bank in the capital Kampala said the market will likely receive usual hard currency inflows from non-governmental organisations (NGOs) converting some of their hard currency holdings to pay salaries.
Additional inflows might come from exporters of commodities like coffee, the trader added. "Those two dynamics will likely keep the shilling broadly supported," he said.
ZAMBIA
Zambia's kwacha is likely to lose some of its recent
gains against the dollar this week as market players with hard
currency positions show reluctance to sell.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 17.5200 per dollar
from a close of 18.6400 a week ago.
"The local unit is expected to depreciate further in the
near term," Access Bank said in a note.
Zambia's central bank offloaded $15 million onto the market
on Wednesday in a bid to boost the kwacha and quell growing
demand for the greenback, Access Bank said.
Zambia has been seeking to restructure its debt after
becoming the first African country to default during the
COVID-19 pandemic in late 2020.
(Reporting by George Obulutsa; Chris Mfula; Christian Akorlie;
Elias Biryabarema
Compiled by Sofia Christensen)
