Africa-FX: Ghana’s Currency Under Pressure, Others Broadly Steady
Ghana’s currency is seen continuing its decline against the dollar in the next week to Thursday, those of Kenya, Uganda and Nigeria are expected to be broadly steady, and Zambia’s could gain, traders said.
GHANA
Ghana’s cedi is likely to extend its gradual slide on firm corporate dollar demand and limited supply. LSEG data showed the cedi trading at 11.05 to the dollar on Thursday, compared to 11.03 a week earlier.
“FX backlogs observed at recent central bank FX auctions indicate supply remains constrained, despite occasional inflows from the extractive sector,” one trader said.
Ronald Mensah, a trader at Stanbic Bank Ghana, said the cedi would continue to have a downside bias in the near term.
KENYA
Kenya’s shilling is expected to remain stable in the coming week, helped by U.S. President Donald Trump’s announcement of an extension to his country’s ceasefire with Iran.
On Thursday the shilling was at 129.20/129.30 per dollar, compared to last Thursday’s close of 129.05/129.25.
UGANDA
Uganda’s shilling should also be range-bound, supported by end-month inflows of hard currency from exporters of commodities like coffee. Commercial banks quoted the shilling at 3,710/3,720 to the U.S. currency, compared to last Thursday’s close of 3,695/3,705.
“As we head into the last days of the month, we should start to see an uptick in (dollar) flows from exporters of commodities like coffee and others,” a trader said. He said the shilling was expected to trade around 3,700 against the dollar in the coming days.
NIGERIA
Nigeria’s naira is projected to be little changed against the greenback in the coming week. Traders said dollar demand was muted, while supply was being affected by portfolio investors buying local bonds and exporters repatriating hard currency.
The naira was quoted at 1,347 to the U.S. currency on the official market on Thursday, compared with 1,342 a week earlier. The currency was changing hands at 1,405 to the dollar in street trading.
“The market has been fairly stable,” a trader said. “We don’t have pressure on the demand side. Demand is subdued and there is liquidity in the market.”
ZAMBIA
Zambia’s kwacha could advance due to an anticipated increase in foreign-currency sales by companies for month-end obligations. On Thursday commercial banks quoted the kwacha at 18.86 per dollar, from 19.40 a week ago.
“The kwacha should get support from payments like salaries, which are in the local currency,” a trader said.
Source:
reuters
Via:
norvanreports
