WEEKAHEAD-AFRICA-FX-Uganda, Zambia currencies to weaken, Ghana cedi to firm | News by Country

    NAIROBI, July 27 (Reuters) - Uganda's shilling and Zambia's
kwacha are forecast to weaken against the dollar in the next
week to Thursday, while Ghana's cedi will firm and the
currencies of Kenya, Nigeria and Tanzania are expected to hold
steady, traders said.
 
    KENYA
    Kenya's shilling        is expected to hold steady in the
next week to Thursday, and traders said they anticipate the
central bank to sell dollars to keep it from weakening further.
    Commercial banks quoted the shilling at 103.80/104.00 to the
dollar, compared with last Thursday's close of 103.85/95.
    "Bearing in mind central bank intervention... feel we should
remain just around this level," a trader at one commercial bank
said.
    
    UGANDA
     The Ugandan shilling        is forecast to weaken due to
dollar demand from the energy sector.
    Commercial banks quoted the shilling at 3,600/3,610, weaker
than last Thursday's close of 3,595/3,605.
    "I think we'll see significant activity by energy importers
and others like manufacturers on the demand side," said a trader
at a leading commercial bank.
  
    ZAMBIA
    The kwacha        may come under pressure next week due to
reduced supply of dollars as month end flows triggered by salary
payments and other obligations dry out.
    Commercial banks quoted the currency of Africa's number two
copper producer at 8.8500 per dollar from a close of 8.8000 a
week ago.
    "The kwacha is expected to trade in a tight band in the days
to come with a weak bias on the back of lower supply for
dollars," Zambia National Commercial Bank said in a note. 
    
    TANZANIA
    The Tanzanian shilling        will hold steady, helped by
dollar inflows from the mining sector and month-end sales of
greenbacks by companies to pay taxes and salaries in local
currency.
    Commercial banks quoted the shilling at 2,234/2,244 to the
dollar on Thursday, barely moved from 2,235/2,245 a week ago.
    "The outlook for the shilling next week is that of continued
stability. There is demand for dollars from energy and
construction sectors, but this is being offset by inflows from
mining companies," said a trader at CRDB Bank.

    NIGERIA
    The naira          is forecast to trade in a narrow range in
the coming days, and is expected to get support due to dollar
inflows from central banks and offshore investors.    
    The local currency was quoted at 364 to the dollar on the
black market on Thursday, slightly firmer than 368 last week. On
the official interbank market the naira has stuck around 305.90
to the dollar since August 2016.
    On the investor forex window the local currency was quoted
at 367 to the dollar.

    GHANA
    The cedi        is expected to firm, lifted by dollar
inflows from investors interested in buying a five-year Treasury
bond, helped by renewed investor confidence after the central
bank cut its policy rate this week.              
    The local unit recovered this week after losses in mid July
triggered by comments by President Nana Akufo-Addo that Ghana
will not extend its $918 million IMF aid deal beyond April 2018.
It was trading at 4.4050 to the dollar by mid-day on Thursday
compared to 4.4200 a week ago.
   "The cut in the monetary policy rate is one of the
manifestations of an improving macroeconomic environment; a
major driver of investor confidence," analyst Joseph Biggles
Amponsah of Accra-based Dortis Research said.

 (Reporting by George Obulutsa, Chris Mfula, Elias Biryabarema,
Oludare Mayowa, Kwasi Kpodo and Fumbuka Ng'wanakilala; Compiled
by George Obulutsa, editing by Pritha Sarkar)
  

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