Africa-FX: Nigerian and Ghanaian Currencies Among Those Seen Stable
The Nigerian, Ghanaian, Ugandan, Kenyan and Zambian currencies are expected to be stable against the dollar in the next week to Thursday, traders said.
NIGERIA
Nigeria’s naira is seen broadly unchanged on both the official and parallel markets, supported by central bank interventions and foreign portfolio inflows.
The unit was quoted at 1,524 naira to the dollar in intraday trading on Thursday, versus a closing quote of 1,527 naira a week earlier.
The currency was changing hands at 1,570 naira to the dollar in street trading on Thursday.
“The naira is expected to remain relatively stable in the coming week largely due to continued inflows from portfolio investors drawn by high yields that are boosting market liquidity,” a trader said.
GHANA
Ghana’s cedi is forecast to remain stable as interbank market activity is subdued.
LSEG data showed the cedi trading at 10.30 to the dollar, unchanged from a week ago.
“The cedi continued to hold its ground against the dollar this week, supported by sustained central bank intervention amid a slowdown in interbank activity,” said Chris Nettey, head of trading Stanbic Bank Ghana.
“We expect a similar trend to persist in the coming sessions,” he added.
Andrews Akoto, head of trading Absa Bank Ghana, also said he expected the dollar/cedi pair to stay range-bound.
UGANDA
Uganda’s shilling is also seen little changed as mid-month tax payments due in local currency limit corporate foreign-currency demand.
Commercial banks quoted the shilling at 3,579/3,589 to the dollar, compared to last Thursday’s close of 3,582/3,592.
“(Dollar) demand will be a little soft because of mid-month tax obligations,” a trader said, adding that the shilling was likely to swing in the 3,550-3,580 range.
KENYA
Kenya’s shilling is seen holding steady in quiet trade.
Commercial banks quoted the shilling at 128.90/129.40 per dollar, compared with last Thursday’s closing rate of 129.00/50.
“It has been relatively stable. We expect this stability to continue as we usually have minimal activity mid-month,” a trader said.
ZAMBIA
Zambia’s kwacha is expected to be trade around its current levels, but some analysts said it could gain further out as the economic outlook improves.
On Thursday the kwacha was quoted at 24.39 per dollar from 24.45 a week ago.
Fintech company Ebury said in a report that it was upbeat on the outlook for the kwacha.
“Zambia appears to be largely overcoming its debt challenges and drought-related economic disruptions,” the report said.
Source: reuters
Via: norvanreports
