African currencies outlook

Nigeria's currency is expected to strengthen against the dollar next week as energy companies begin their month-end dollar sales, while Ghana's cedi is likely to remain stable due to lower corporate demand for the greenback.
NIGERIA The naira is seen appreciating against the US dollar next week as traders anticipate increased dollar inflows from energy companies and a sustained supply of the greenback to exchange bureau by the central bank. "Demand for the dollar remains strong as a result of unmet demand at the official window on Wednesday that has channelled to the interbank," one trader said.
The central bank sold $400 million at 152.10 to the dollar at its bi-weekly foreign exchange window on Wednesday, short of the $558.38 million demanded. "We anticipate an increase in dollar inflows next week from the usual month-end sales cycle by energy majors and this should provide needed support for the naira," another trader said.
GHANA The cedi is expected to continue to hold firm in the coming week due to lower corporate demand for dollars, traders said. Jacob Brobbey of Barclays Bank quoted the interbank cedi-dollar exchange rate at 1.5250/75, slightly down from its open of 1.5240/65. "I expect the cedi to be relatively stable throughout next week and to trade within the 1.5250-15290 range," Brobbey said.
KENYA Kenya's shilling is expected to get support against the dollar from rising interbank lending rates as the central bank's tightening of its overnight borrowing rules has made it costlier to hold the US currency. Commercial banks quoted the shilling at 92.80/93.00 to the dollar, down from 92.75/95 at last Thursday's close. Traders said the shilling was expected to keep gaining due to a lack of liquidity after the Central Bank of Kenya revised its overnight borrowing rules in mid-August.
TANZANIA Tanzania's shilling will likely continue to trade in a tight range in the coming days, with traders expecting it to come under mild depreciation pressure due to demand from the oil sector. Commercial banks quoted the local currency at 1,622/1,625 to the dollar, compared with 1,623/1,628 at last Thursday's close.
"The currency has been trading in a very tight band. Most of the corporate customers are shying away from entering the market at the current exchange rate." Traders said they expected the shilling to trade in the 1,620-1,625 range in the coming days.
ZAMBIA The kwacha is expected to trade sideways next week as the market looks ahead to presidential elections next month. Commercial banks on Thursday quoted the currency of Africa's top copper producer at 4,951 against the dollar from 4,940 a week ago. "We expect the kwacha to be range-bound in the band 4,940-4,990," one trader said.