NAIROBI, Sept 22 The Nigerian naira is expected
to weaken further in the next week mainly due to fears of
constrained supplies of dollars.
The naira hit a record low of 436 to the dollar on
the parallel market on Thursday and is expected to depreciate
further due to concerns about lack of dollars in the market.
The foreign exchange reserves of Africa's top crude producer
were down to $24.83 billion by Sept. 19, its lowest level in
more than three years.
Traders said there had been no significant policy response
to the fall in the reserves, further fuelling the concerns.
The naira was quoted at 315 to the dollar on the official
interbank market on Thursday, down from 305 a dollar, where it
had settled in the last one week.
The Kenyan shilling is expected to hold steady
against the dollar in the coming week amid rising demand from
the manufacturing sector, traders said.
At 0912 GMT, commercial banks quoted the shilling at
101.20/30 to the dollar, the same as last Thursday's close.
"Manufacturers will be buying dollars as the end-month
demand cycle begins," said a trader from a commercial bank.
The Ugandan shilling could weaken due to an expected
rebound in appetite for dollars from importers, as the month
draws to a close.
At 1057 GMT, commercial banks quoted the shilling at
3,380/3,390, slightly weaker than last Thursday's close of
"We anticipate a higher level of demand from importing
corporates which could fuel some depreciation," said a trader at
a leading commercial bank.
The Ghanaian cedi could remain steady in coming weeks
on expected dollar inflows from a $1.8 billion syndicated cocoa
loan signed by industry regulator Cocobod on Wednesday, analysts
The cedi, which has been fairly stable this year, was
trading at 3.98 to the dollar on Thursday compared to 3.9705 a
"In the week ahead the pair (USD/GHS) is expected to remain
at 3.97 on expectations of fresh inflows from this week's $1.8
billion annual cocoa loan," said Joseph Biggles Amponsah,
analyst at Accra-based Dortis Research.
The kwacha is likely to firm next week due to
anticipated conversions of hard currency by firms preparing to
pay month-end costs and taxes.
At 1206 GMT, commercial banks quoted the currency of
Africa's second largest copper producer at 10.0400 per dollar
from 9.9800 a week ago.
"We could see a bit of gains ... There will be forex in the
market because corporates will be converting their forex to meet
salary obligations and other month-end expenditure," independent
financial analyst Maambo Hamaundu said.
The Tanzanian shilling is expected to strengthen
marginally against the U.S. dollar in the days ahead, helped by
subdued demand for greenbacks from importers and increased
inflows from the tourism and agriculture sectors.
Commercial banks quoted the shilling at 2,181/2,186 to the
dollar on Thursday, barely moved from 2,182/2,187 a week ago.
"The shilling could appreciate slightly next week.
The market is very stable, with dollar inflows coming in from
tourism and agricultural commodity exports such as cotton,
coffee and tobacco," said Mohamed Laseko, a dealer at CRDB Bank.
(Reporting by Oludare Mayowa, Nqobile Dludla, John Ndiso, Elias
Biryabarema, Fumbuka Ng'wanakilala and Kwasi Kpodo; Editing by