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Reuters
22-05-2025
- Business
- Reuters
AFRICA-FX-Ghana and Uganda currencies could gain
ACCRA, May 22 (Reuters) - The Ghanaian and Ugandan currencies are expected to strengthen in the next week to Thursday, while Nigeria's could be stable and Kenya's and Zambia's may fall, traders said. Ghana's cedi is expected to firm further, underpinned by strong hard-currency inflows from remittances and continued central bank support. LSEG data showed the cedi trading at 11.70 to the dollar on Thursday, compared to 12.40 per dollar at last Thursday's close. "The cedi continued its appreciation streak against the dollar, breaking the 12.00 key level on the interbank market," said Chris Nettey, head of trading at Stanbic Bank Ghana. "We expect further appreciation in the coming sessions, supported by central bank's ongoing interventions," he added. Uganda's shilling is seen trading with a firming tone, bolstered by month-end foreign-currency inflows from non-governmental organisations. Commercial banks quoted the shilling at 3,646/3,656 to the dollar, near last Thursday's close of 3,645/3,655. "The bias will be on the stronger side mainly from charity flows," a trader said. Charities convert some of their hard-currency holdings around the end of the month to meet operational expenses. Nigeria's naira is seen holding steady after strengthening this week due to foreign portfolio inflows for a central bank auction. The naira was quoted around 1,590 to the dollar in intraday trading on Thursday, compared with last week's quote of 1,596 naira. The unit was sold at 1,620 naira to the dollar in street trading on Thursday. "I expect the naira to trade between 1,585 naira and 1,595 levels next week," one trader said. "The uptick in crude prices and FPIs (foreign portfolio inflows) this week ... helped liquidity in the market." Kenya's shilling is expected to weaken slightly towards the end of May, as a modest increase in foreign exchange demand from the manufacturing sector outpaces inflows from remittances and NGO salaries. LSEG data showed the shilling at 129.00/50 on Thursday, the same level it closed a week ago. "We see the shilling weakening a little towards the end of the month on month-end (FX) demand from importers in the manufacturing sector," a trader said. Zambia's kwacha is likely to remain under pressure as the market continues to experience rising foreign-currency demand and subdued inflows. On Thursday the kwacha was quoted at 27.62 per dollar from 27.00 a week ago. "In the absence of substantial dollar supply, the current trend should continue going into next week," an analyst said.
Reuters
15-05-2025
- Business
- Reuters
AFRICA-FX-Kenyan and Nigerian currencies could slip
NAIROBI, May 15 (Reuters) - The Kenyan and Nigerian currencies are expected to weaken slightly against the dollar in the next week to Thursday, while Uganda's and Zambia's may hold steady and Ghana's could add to recent gains, traders said. Kenya's shilling is forecast to fall due to increased importer demand for dollars from sectors such as food-processing. Commercial banks quoted the shilling at 129.00/129.50 per dollar on Thursday, the same level it closed a week ago. "We could see a slight weakening of the shilling, but not in a major way. We will expect (dollar) demand from other sectors," one trader said. Nigeria's naira could slip on the official market as importer foreign-currency demand outweighs central bank dollar sales. The naira was quoted around 1,596 to the dollar in intraday trading on Thursday, versus a closing quote of 1,608 naira per dollar a week earlier. The unit was sold at about 1,630 naira to the dollar in street trading on Thursday. "The central bank's interventions to curb volatility will continue, but second-quarter import demand pressures could offset these stabilisation efforts," a trader said. Uganda's shilling is seen trading mostly stable, helped by limited dollar demand and inflows from commodity exporters. On Thursday commercial banks quoted the shilling at 3,645/3,655 per dollar compared with last Thursday's close of 3,656/3,666. "Activity on the buying side is very slow, probably from weak consumer spending, while on the other side inflows are quite significant," a trader said. "I don't think we'll see big movement on either side." He forecast the local unit would trade in a range of 3,640-3,660 versus the dollar in the coming days. Zambia's kwacha is expected to hold steady, supported by hard-currency sales by companies preparing to pay taxes. On Thursday the kwacha was quoted at 27.00 per dollar from 26.50 per dollar a week ago. "There is VAT (Value Added Tax) which is due next week and this should support the kwacha," one financial analyst said. Ghana's cedi could extend its recent rally on the back of strong foreign-currency inflows and weaker corporate demand while central bank interventions continue. LSEG data showed the cedi trading at 12.40 to the dollar on Thursday, compared to 13.15 per dollar at last Thursday's close. "The cedi continued to post further gains against the dollar this week, supported by easing USD demand following several weeks of strong inflows and sustained intervention by the central bank," said Chris Nettey, head of trading at Stanbic Bank Ghana. "We expect this trend to persist in the coming sessions," he added.
Reuters
27-03-2025
- Business
- Reuters
AFRICA-FX-Most currencies seen steady except Zambia's
NAIROBI, March 27 (Reuters) - The Kenyan, Ugandan, Nigerian and Ghanaian currencies are expected to be broadly stable against the dollar in the next week to Thursday, while Zambia's is seen under pressure, traders said. KENYA Kenya's shilling is expected to hold its ground because of subdued foreign-currency demand from the manufacturing sector and fuel importers through the start of the month. Commercial banks quoted the shilling at 129.15/129.65 to the U.S. dollar, compared to 129.20/129.50 at last Thursday's close. NIGERIA Nigeria's naira is seen stable in the coming week, supported by central bank dollar sales. The naira was quoted at 1,538 to the dollar on the official market on Thursday compared with last week's quote of 1,535 naira. The currency was changing hands at 1,550 to the dollar in street trading on Thursday. "We expect the naira to be relatively stable around 1,530/40 to (the) dollar," one trader said. "There's lots of demand but people are conscious of the level they want to deal." GHANA Ghana's cedi is expected to stay steady as demand for foreign currency is largely matched by supply. LSEG data showed the cedi trading at 15.45 to the dollar on Thursday, the same as last Thursday's close. "The cedi held its ground against the dollar throughout the week, with balanced demand and supply keeping it steady, backed by central bank intervention. We anticipate this stability to persist in the coming week," Chris Nettey, head of trading Stanbic Bank Ghana, said. Sedem Dornoo, senior trader Absa Bank Ghana, said the market was showing signs of ample liquidity, with flows coming from both local and offshore participants. "We reckon the (dollar/cedi) pair will remain range-bound in the near term as liquidity remains," he said. UGANDA Uganda's shilling is forecast little-changed, with the potential for some gains on month-end hard-currency inflows from non-governmental organisations. "These inflows are expected to keep the local unit broadly stable with a marginal bias on the firming side," a trader said. He forecast a trading range of 3,650-3,670 against the dollar over the next week. Commercial banks quoted the shilling at 3,660/3,670 to the dollar, unmoved from last Thursday's close. ZAMBIA Zambia's kwacha could slip as foreign-currency demand outweighs supply. Increased imports of food and electricity have contributed to the depreciation of Zambia's currency in recent months. The kwacha was quoted at 28.75 from 28.80 a week ago.
