NAIROBI May 4 Traders expect the Kenyan
shilling to weaken next week, with increased oil importer demand
outweighing waning dollar inflows, while Ghana's cedi will be
stable due to central bank support.
The Kenyan shilling could weaken due to increased oil
importer demand outweighing dwindling dollar inflows from
offshore investors buying government debt, traders said.
At 0837 GMT, commercial banks quoted the shilling at
103.10/20 to the dollar compared with 103.15/25 last Thursday.
"Against the bulk of importer demand, we're likely to see a
slowdown in the foreign investment coming in," a trader at a
commercial bank said.
Ghana's cedi is seen stable against the dollar next
week and beyond as central bank support and growing investor
interest following a change of government increase dollar
inflows, analysts said.
The currency stood at 4.2100 to the dollar on Thursday, said
Joseph Biggles Amponsah of Dortis Research in Accra. It touched
record lows of 4.7420 last month before recouping lost ground.
"For the better part of the month of May, the local currency
is expected to remain fairly stable as investor interest in the
country deepens. The central bank's activities in the market has
also heightened confidence in the cedi," Amponsah said.
The Nigerian naira is seen stable around the
prevailing level in the coming days as the central bank
continues to open up the foreign exchange market and pump in
more dollar liquidity to support the local currency.
The local currency was quoted at 391 to the dollar on the
black market on Thursday, compared with 388 last week, while it
traded at 306.25 on the official interbank market against 305.90
a dollar last week.
Traders said the central bank's resolve to improve liquidity
in the forex market has continued to have a positive impact and
improved foreign investor confidence in the forex market of
Africa's biggest economy.
The central bank has been intervening on the official market
to try to narrow the spread between the two markets since
intervention began in February and has sold about $4 billion,
analysts said, a pace they doubt it can sustain.
The Ugandan shilling is seen weakening in the days
ahead, weighed by demand from construction firms involved in the
development of the energy and transportation sectors.
At 1017 GMT commercial banks quoted the shilling at
3,625/3,635 against the dollar, compared to last Thursday's
close of 3,635/3,645.
"There's significant enthusiasm to expedite these projects,
so we expect quite strong demand from these firms to pay for
imported machinery and other materials," said a trader from a
leading bank, who said the shilling would likely oscillate
between 3,625-3,650 against the greenback until next Thursday.
Tanzania's shilling is seen holding steady, with
commercial banks quoting it at 2,235/2,245 to the dollar,
compared with last Thursday's close of 2,232/2,242.
"We have seen slight increase in demand on the interbank as
well as from corporate, but it has been matched by the inflows
as well. Demand is coming from oil importers and manufacturing.
Inflows are coming from the mining sector," a trader at CRDB
Zambia's kwacha is expected to recover against the
dollar next week. At 1214 GMT it stood at 9.2250 to the dollar
compared with last Thursday's close of 9.3506.
"We are likely to see a slight appreciation of the kwacha
next week as companies convert dollars to the local currency to
pay tax which is due on 10 May," independent financial analyst
Maambo Hamaundu said.
(Reporting by George Obulutsa, Matthew Mpoke Bigg, Oludare
Mayowa, Elias Biryabarema, John Ndiso and Chris Mfula; Compiled
by Nqobile Dludla; Editing by Alexander Smith)