LUSAKA, Dec 7 (Reuters) - The Zambian kwacha and Tanzanian shilling are likely to strengthen next week, while other African currencies are seen stable, traders and analysts said.
The kwacha is likely to firm next week as companies sell dollars in preparation for the payment of taxes and other mid-month obligations.
At 0921 GMT on Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 10.2900 per dollar, weaker than 10.1000 a week ago.
“The local unit is expected to make a rebound in the short term as exporters convert for mid-month obligations, and may get further support from the upcoming auction of government long term securities,” Cavmont Bank said in a note.
The Tanzanian shilling is expected to strengthen slightly against the U.S dollar over the coming week, helped by a slowdown in demand for greenbacks from importers and inflows from the agriculture sector.
Commercial banks quoted the shilling at 2,241/2,244 to the dollar on Thursday, barely moved from 2,235/2,245 a week ago.
“A decline in demand for dollars and inflows from cashew nut exports will likely support the appreciation of the local currency in the days ahead,” said a trader at CRDB Bank.
The Uganda shilling is seen range-bound in the comings days as players await a central bank key rate decision before taking major positions.
Commercial banks on Thursday quoted the shilling at 3,620/3,630, stronger than last Thursday’s close of 3,628/3,638.
“I expect it to be broadly range-bound ahead of the rate decision ... obviously depending on if there’s a cut or not it will impact the currency,” said David Okwenje, trader at Stanbic Bank.
Ghana’s cedi is expected to be fairly stable in the coming weeks, cushioned mainly by steady dollar sales by the central bank to meet a growing demand by businesses, currency traders said on Thursday.
The local currency began firming last week on Bank of Ghana support after touching an eight-month low of 4.6400 to the dollar in mid November. It was trading at 4.5175 to the greenback at 1030 GMT on Thursday compared with 4.5720 a week ago.
“The central bank’s presence on the market has been very supportive over the past week, leading to the cedi’s partial recovery and this is likely to continue, albeit at the expense of the nation’s reserves,” said Biggles Joseph Amponsah, head of treasury at Northstar Home Finance Limited in Accra.
The Kenyan shilling is expected to remain stable with healthy remittances and inflows of dollars from investors helping to offset demand for the U.S. currency from fuel, merchandise and vehicle importers, traders said.
At 1120 GMT, commercial banks quoted the shilling at 102.85/103.05, compared with last Thursday’s close of 103.00/103.20
“Investors are wiring money... (while) importers are making payments before the year closes,” said a senior trader at a commercial bank. (Reporting by Chris Mfula,Fumbuka Ng’ wanakilala, Elias Biryabarema, Christian Akorlie and John Ndiso; Compiled by Chris Mfula; Editing by Mark Potter)