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WEEKAHEAD-AFRICA-FX-Zambia's kwacha seen firmer on increased dollar inflows
June 8, 2017 / 1:16 PM / 2 months ago

WEEKAHEAD-AFRICA-FX-Zambia's kwacha seen firmer on increased dollar inflows

LUSAKA, June 8 (Reuters) - Zambia's kwacha is expected to firm in the coming week mainly due to increased dollar inflows from corporate sellers and exporters looking to fulfil tax payments due next Friday.

ZAMBIA

At 0700 GMT on Thursday, commercial banks quoted the kwacha at 9.2500 per dollar, marginally stronger than 9.3000 a week ago.

"The local unit is expected to remain buoyant as the supply of the green currency continues to improve on the market," the Zambian branch of South Africa's First National Bank said.

GHANA

Ghana's cedi could remain under pressure next week as weekly dollar sales by the central bank proves to be insufficient to meet a surge in offshore demand, traders said.

The unit was trading at 4.4200 per dollar by mid-morning on Thursday, compared with 4.3275 a week ago.

"The cedi could come under pressure if there's no substantial support from the central bank within the week as businesses would prefer to buy and hold to guard against further depreciation of the cedi," analyst Joseph Biggles Amponsah of Accra-based Dortis Research said.

NIGERIA

The Nigerian naira is seen trading within the prevailing band in coming days at both the official interbank window and black market after the central bank regular intervention policy impacted positively on dollar liquidity in the market.

The local currency was quoted at 368 per dollar on the black market on Thursday, against 382/dollar last week, while it trading around 305.60 to the dollar on official interbank window.

"Speculators have been successfully chased out of the market with the gradual convergence in rate and improved dollar liquidity in the market," said Aminu Gwadabe, president of the Association of Bureau de Change operators.

KENYA

The Kenyan shilling is seen trading in a narrow range with hard currency inflows from charities and export earnings matching oil importer demand, traders said.

Commercial banks quoted the shilling at 103.25/45 per dollar, the same as last Wednesday's close. Markets were closed on Thursday for a Kenyan public holiday.

"We're likely to see some cagey movement ... some support from charities," said a trader from a commercial bank.

TANZANIA

The Tanzanian shilling is expected to hold steady in the coming days as market players await the outcome of the debate on the 2017/18 fiscal year budget proposals in parliament.

Commercial banks quoted the shilling at 2,235/2,245 to the dollar on Thursday, weaker than 2,238/2,243 a week ago.

UGANDA

The Ugandan shilling is seen trading rangebound as investors try to figure out the implications of key announcements like the government's planned borrowing in the next fiscal year budget, traders said.

Commercial banks quoted the shilling at 3,585/3,595, stronger than last Thursday's close of 3,590/3,600. (Reporting by Chris Mfula, Kwasi Kpodo, Oludare Mayowa, John Ndiso, Fumbuka Ng'wanakilala and Elias Biryabarema; Compiled by Olivia Kumwenda-Mtambo; Editing by Ed Stoddard)

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