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Reuters
3 days ago
- Business
- Reuters
AFRICA-FX-Most currencies expected to be stable
NAIROBI, June 5 (Reuters) - The currencies of Kenya, Ghana, Uganda and Zambia are expected to be largely steady against the dollar in the next week to Thursday, traders said. Kenya's shilling is forecast to remain in tight ranges, as it has done since last year. The shilling traded at 129.00/50 to the U.S. currency on Thursday, the same level as at last Thursday's close. Ghana's cedi is expected to be broadly stable as increased dollar demand has brought a recent rally to a halt. LSEG data showed the cedi trading at 10.20 to the dollar on Thursday, unchanged from last Thursday. "The cedi's strong rally paused in the last week as demand for the greenback ramped up considerably. The pair has remained largely stable, however, as the central bank has upped its support," said Sedem Dornoo, a senior trader at Absa Bank Ghana. "We expect the pair to remain range-bound as the central bank continues to help clear the demand buildup through its daily auctions," he added. Uganda's shilling is seen little changed as traders wait for next week's budget. Commercial banks quoted the shilling at 3,631/3,641 to the dollar, compared to last Thursday's close of 3,630/3,640. "Ahead of (the) budget reading we normally see a sharp drop in activity because some players decide to play a waiting game to see what's in the budget," a trader said. Zambia's kwacha could draw support from lower oil prices and upcoming tax payments. On Thursday the kwacha was quoted at 26.35 from 26.90 a week ago. "There was a reduction in the price of diesel last week. Companies will also be paying Pay As You Earn and Withholding tax next week," one analyst said.
Reuters
29-05-2025
- Business
- Reuters
AFRICA-FX- Ghana's cedi to strengthen further next week
NAIROBI, May 29 (Reuters) - Ghana's cedi is forecasted to gain strength in the coming week, bolstered by continued remittance inflows and interventions from the central bank, while Kenya's shilling is expected to remain steady, and Nigeria's naira to stay range-bound, traders said. The cedi currency has jumped more than 40% versus the U.S. dollar this year, far outperforming its African and emerging market peers. Data from the London Stock Exchange Group (LSEG) showed the cedi trading at 10.25 to the dollar on Thursday, compared to 11.55 per dollar at last Thursday's close. "The cedi has remained on the front foot for much of the last week, however, we've observed some increased hard currency demand from offshore players in the most recent sessions as they look to take profit from GHS investments," Sedem Dornoo, a senior trader at Absa Bank Ghana, said. "We reckon we'll continue to see support around current 10 levels in the very near term, however, it's likely that the local unit will begin to rally again when this demand is cleared as the central bank continues to provide daily support to the market," he added. Kenya's shilling is expected to hold steady next week. The shilling traded at 129.00/50 per dollar, compared with last Thursday's close of 128.95/129.45. Traders forecast Nigeria's naira to maintain its trading range in the coming week, even amid demand from importers. The naira's stability is expected to be supported by the central bank's weekly dollar sales and inflows from portfolio investors. The naira was quoted around 1,587 to the dollar in intraday trading on Thursday versus last week's closing quote of 1,586 naira. The currency was changing hands around t 1,635 to the dollar in street trading on Thursday. "I see naira trading between 1,580 and 1,590, supported by the central bank's dollar sale. Though volatility remains possible, domestic policy and dollar inflows could help anchor the market," one trader said. The Ugandan shilling is expected to firm against the dollar, helped by inflows from this week's Treasury auction, traders said. At 0811 GMT commercial banks quoted the shilling at 3,627/3,637, compared to last Thursday's close of 3,645/3,655. "There was significant offshore (dollar) inflows into the bond auction which I think will give the shilling a boost," said a trader at one commercial bank. The central bank this week held a large and rare private placement treasury bond auction where a total of 2.4 trillion Ugandan shillings ($661.70 million) worth of debt was on offer.
Reuters
17-04-2025
- Business
- Reuters
Ghana's currency expected to post gains, Zambia seen under pressure
NAIROBI, April 17 (Reuters) - Ghana's cedi is expected to gain marginally against the U.S. dollar in the coming week, while Zambia's kwacha is seen under pressure and Kenya's shilling, Nigeria's naira and Uganda's shilling are forecast to be broadly stable, traders said. KENYA Kenya's shilling is expected to hold steady in the next week. The shilling traded at 129.40/90 per dollar, compared with last Thursday's close of 129.25/75. NIGERIA Nigeria's naira is forecast to remain stable as the central bank continues dollar interventions to offset demand from foreign investors seeking safer assets as volatility over U.S. trade tariffs persist. The naira was quoted around 1,599 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,630 naira a week earlier. The unit was sold at 1,610 naira to the dollar in street trading on Thursday. "The central bank has able to stem the fall in the naira exchange rate, and this means we see the unit stabilizing around 1,600 in the coming week," one trader said. GHANA Ghana's cedi is expected to post marginal gains against the dollar next week on strong central bank support amid uncertainty over U.S. trade tariffs. LSEG data showed the cedi trading at 15.4300 to the dollar on Thursday, compared to 15.4500 at last Thursday's close. "The cedi has rallied this week on the back of increased support from the central bank. Interbank liquidity has improved with bid-offer spreads tightening significantly as more market makers have actively shown firm prices," Sedem Dornoo, senior trader Absa Bank Ghana, said. "Looking ahead, we expect continued liquidity, with room for the local unit to post further gains as FX supply remains strong," he added. UGANDA The Ugandan shilling is expected to hold steady in the coming week, supported by an anticipated slowdown in demand for dollars during the shortened Easter holiday period. Commercial banks quoted the shilling at 3,660/3,670, compared with last Thursday's close of 3,680/3,690. "We have an Easter holiday and some businesses will be closed so on the demand side we anticipate weak activity," said an independent foreign exchange trader in the capital Kampala. He said the shilling will likely trade in the 3,650-3,670 range in the coming week. Markets will be closed in Uganda on Friday and Monday for Easter holiday. ZAMBIA The kwacha is expected to remain under pressure against the dollar next week as demand for hard currency continues to exceed supply. On Thursday, the currency of Africa's second largest copper producer was quoted at 28.67 per dollar from 28.75 a week ago. "The kwacha remains susceptible to further losses in the absence of meaningful foreign currency inflows or a shift in macroeconomic fundamentals," Access Bank ( opens new tab said in a note.
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.
Reuters
20-03-2025
- Business
- Reuters
AFRICA-FX-Zambia's kwacha to weaken, other African currencies seen stable
KAMPALA, March 20 (Reuters) - Zambia's kwacha currency is expected to weaken against the U.S. dollar in the coming week, while Kenya's shilling, Nigeria's naira, Ghana's cedi and Uganda's shilling are seen holding steady, traders said. KENYA Kenya's shilling is seen trading stable in the coming days, drawing support from inflows of hard currency from non-governmental organisations and diaspora remittances, traders said. At 0802 GMT, commercial banks quoted the shilling at 129.25/129.45, the same as last Thursday's close. Charities typically convert some of their local currency holdings at the end of the month to meet operational expenses. "There will also be a bit of demand, so overall the market will be balanced," said a trader from a commercial bank in the capital Nairobi. NIGERIA Nigeria's naira is seen range-bound next week, driven by central bank dollar sales aimed at boosting liquidity in the foreign exchange market. The naira was quoted around 1,535 to the dollar in intraday trading on Thursday, traders said, compared with a closing quote of 1,549 naira a week earlier. The unit was sold at 1,575 naira to the dollar in street trading on Thursday. "I expect the naira to exchange around current levels after the central bank's dollar sales helped to absorb the volatility we saw last week," one trader said. GHANA Ghana's cedi is seen extending its recent stability next week as central bank and offshore inflows lend support to dollar demand from the manufacturing and energy sectors. LSEG data showed the cedi at 15.45 to the dollar on Thursday, unchanged from last Thursday's close. "The cedi has been largely stable against the dollar in recent sessions as the FX market has remained liquid," Sedem Dornoo, a senior trader at Absa Bank, said. "We expect this narrative to persist in coming sessions as the central bank continues to support the market through its forwards auctions," he added. UGANDA Uganda's shilling is seen trading in a stable range, helped by inflows of hard currency from charities and a generally subdued appetite among importers. At 0829 GMT, commercial banks quoted the shilling at 3,660/3,670, the same level as last Thursday's close. A trader at one commercial bank said traders were anticipating the customary inflows of hard currency from NGOs at the end of the month. "On the other hand, demand is poor, so I think those two factors combined mean we'll generally have a stable shilling," he said, forecasting the local unit would play in the 3,640-3,680 range against the dollar. ZAMBIA Zambia's kwacha is likely to continue trading weaker next week due to scanty inflows as dollar demand remains high. On Thursday, the currency of Africa's second largest copper producer was quoted at 28.80 from 28.58 a week ago. "The direction of travel is likely to remain unchanged in the coming days amid growing demand for hard currency against a backdrop of limited supply," Access Bank said in a note. Increased imports of food and electricity have contributed to the depreciation of Zambia's currency in recent months.
