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WEEKAHEAD-AFRICA-FX - Kenyan, Ugandan shillings to firm, Nigeria, Zambia currencies to be stable
November 30, 2017 / 12:25 PM / 13 days ago

WEEKAHEAD-AFRICA-FX - Kenyan, Ugandan shillings to firm, Nigeria, Zambia currencies to be stable

    NAIROBI, Nov 30 (Reuters) - The Kenyan and Ugandan shillings
are forecast to firm against the dollar in the next week to
Thursday, while Zambia's and Nigeria's currencies are expected
to hold steady, traders said.
        
    KENYA
    The Kenyan shilling        could strengthen against the
dollar in the coming week due to a rally in selected stocks at
the Nairobi securities exchange attracting offshore investors,
traders said.
    Commercial banks quoted the shilling at 103.00/20 per
dollar, compared with 103.25/45 at last Thursday's close. 
    "We are seeing an uptick in activity from foreign buyers
helping the shilling," said a trader from a commercial bank.    

    UGANDA
    The Ugandan shilling        is expected to strengthen
moderately over the next few days, underpinned by dollar inflows
from non-government organisations doing conversions to clear
end-of-year obligations.
    Commercial banks quoted the shilling at 3,627/3,637,
compared to last Thursday's close of 3,630/3,640. 
    "I think NGOs (non-governmental organisations) will be doing
conversions to meet any outstanding obligations for the year,"
said David Bagambe, trader at Diamond Trust Bank Uganda. 
     
    ZAMBIA
    The kwacha        is expected to remain range-bound
following a drop in dollar demand as market players hold on to
the local currency in anticipation of lower rates.
    Commercial banks quoted the currency of Africa's
second-largest copper producer at 10.0800 per dollar, almost the
same as a close of 10.0850 a week ago.
    "In the interim, a balance seems to have been established
around current levels. The range of 10.000-10.200 looks likely
to hold for the remainder of the year," the local branch of
South Africa's First National Bank (FNB) said in a note.
    
    NIGERIA
    The naira          is seen stable on the spot market,
supported by investor inflows and almost daily interventions by
the central bank, traders said
    Volumes on the investor window, Nigeria’s main tradable
market traded $218.66 million on Wednesday. Trades have been
consistent on the market for months, helping the currency hold
up at around 360 naira per dollar. Nigeria has at least six
exchange rates which it has used to mask pressure on the
currency. 
    Traders expect the naira to hold up across its other
exchange rates next week hovering at around 305 naira on the
interbank market supported by central bank.

 (Reporting by John Ndiso, Chris Mfula, Elias Biryabaremaand
Chijioke Ohuocha; Compiled by George Obulutsa, Editing by
WIlliam Maclean)
  

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