ACCRA Feb 16 Ghana's cedi is expected to remain
under pressure next week amid market uncertainty over a
weaker-than-expected 2016 while the Zambian kwacha is likely to
hold its gains supported by dollar inflows from investors buying
Ghana's often volatile cedi could remain on the ropes
next week on offshore dollar demand, amid market uncertainty
over how the new government will address the country's
weaker-than-expected fiscal results for 2016.
Ghana's currency has been under pressure since mid-January,
when the new government announced it had uncovered contract
arrears equivalent to $1.6 billion and a budget deficit close to
double digits, or around double the 2016 target of 5.25 percent
of gross domestic product.
It touched a low of 4.4600 to the dollar by mid-morning on
Thursday, compared with 4.4100 a week ago, and down 5.5 percent
The Nigerian naira faces fresh pressure on the
parallel market with dollar supply coming short of demand by
persons seeking currency to pay school fees abroad as the
central bank continue to ratio forex for businesses.
The local currency was quoted at 510 naira per dollar on the
black market on Thursday, weaker than last week's 500 to the
dollar. Demand for dollars has soared even though Nigeria's
forex reserves have reached their highest in more than 12
months. The naira continues to trade flat on the official
interbank window at 305.5 to the dollar.
Traders said demand pressure is mounting at the black market
but dollar supply has not significantly improved, suggesting
further depreciation of the local currency may be coming.
The kwacha is expected to hold its gains next week
supported by dollar inflows from foreign investors planning to
take part in a bond issue on Feb. 24.
At 1013 GMT on Thursday, commercial banks quoted the kwacha
at 9.6750 per dollar, firmer than a week ago when it closed at
Kenya's shilling is expected to hold steady, with a
bias to weaken because of dollar demand from importers, traders
At 1220 GMT, commercial banks quoted the shilling at
103.65/75 to the dollar, compared with last Thursday's close of
The Tanzanian shilling is seen remaining flat against
the dollar in the coming days as demand for dollars weakens.
Commercial banks quoted the shilling at 2,230/2,240 to the
dollar on Thursday, unchanged from a week ago.
(Reporting by Kwasi Kpodo, Oludare Mayowa, Chris Mfula, George
Obulutsa, Fumbuka Ng'wanakilala,; Compiled by Tanisha Heiberg;
Edited by Larry King)