NAIROBI, June 29 (Reuters) - Ghana’s cedi is expected to gain ground against the dollar in the next week to Thursday, while Kenya’s shilling is forecast to weaken, traders said.
The Kenyan shilling is forecast to weaken due to retail merchants and oil importers buying dollars amid weak supply from foreign investors buying government securities, traders said.
Commercial banks quoted the shilling at 103.75/85 per dollar, compared with 103.75/55 at last Thursday’s close.
“Dollar supply side has become weaker...jittery demand from importers buying dollars to meet short-term liquidity needs,” a trader from a commercial bank said.
The kwacha is expected to remain steady with a bias to appreciating slightly towards the end of next week as companies convert hard currency to the local unit to pay taxes.
Commercial banks quoted the currency of Africa’s No.2 copper producer at 9.1500 per dollar from a close of 9.2500 a week ago.
“The performance will be more or less what it is now but we could see a bit of appreciation because of tax payments due on Thursday next week,” independent financial analyst Maambo Hamaundu said.
The Nigerian naira is seen depreciating marginally on the black market in the days ahead on an expected increase in dollar demand by small businesses and people planning for summer holidays.
The local currency was quoted at 370 to the dollar on the black market on Thursday, compared with 365 a dollar it traded at last week, while commercial lenders are yet to put up a quote on the interbank market.
“We are expecting a slight depreciation in the value of the naira as we approach the summer holiday period for many Nigerians unless the central bank increases dollar supply to the market to cater for the likely surge in demand,” one currency trader said.
Ghana’s cedi is seen firming next week on the central bank’s dollar sales, helped by forex inflows from offshore investors motivated by improving macroeconomic variables, analysts said. The local unit was trading at 4.3909 per dollar by mid-morning on Thursday, compared with 4.4200 a week ago. “Improving macroeconomic variables and active central bank support are expected to support the cedi in the week ahead as investors’ appetite in the economy grow stronger,” Joseph Biggles Amponsah, an analyst at Accra-based Dortis Research, said.
Reporting by John Ndiso, Kwasi Kpodo, Oludare Mayowa and Chris Mfula; Editing by George Obulutsa and Susan Thomas