African currencies week ahead: Kenyan shilling to ease, Nigerian currency to strengthen

Kenya's shilling is seen weakening against the dollar in the coming week, while the Nigerian naira is expected to strengthen, traders said.
KENYA: The Kenyan shilling may weaken due to demand for dollars from oil importers and multinational companies who want to stock up on the currency and avoid being hit by a further decline, traders said.
Commercial banks quoted the shilling at 103.85/104.05 to the dollar on Thursday morning, compared with 103.55/75 at last Thursday's close.
"Oil importers and corporates are ordering dollars to hold in case the shilling weakens further," said a trader at a commercial bank.
UGANDA: The Ugandan shilling is expected to hold firm in the week ahead, supported by local firms who need the local currency to meet mid-month tax payments.
Commercial banks quoted the shilling at 3,613/3,623, stronger than last Thursday's close of 3,625/3,635.
"Mid-month tax payments will be due next week which will likely subdue (dollar) demand by corporate buyers," said Benon Okwenje, trader at Stanbic Bank Uganda, who added the shilling was likely to hover between 3,605 and 3,625 in coming days.
GHANA: Ghana's cedi is expected to stay stable next week, with investors buoyed by pledges from new President Nana Akufo-Addo to fight corruption and cut taxes to boost private businesses.
The local unit, which has remained fairly stable since December, was trading at 4.2238 to the dollar at mid-morning Thursday, up from last Thursday's close of 4.2800.
"In the week ahead the USD/GHS is expected to steady within the 4.24-4.26 band, pending any significant policy changes from the new government," currency analyst Joseph Biggle Amponsah of Accra-based Dortis Research said.
NIGERIA: Nigeria's naira is expected to strengthen a little next week after the central bank assured currency changers of its plans to improve dollar liquidity in the market.
The local currency traded at 492 per dollar on the black market on Thursday, slightly weaker than 490 last week amid thin dollar liquidity. The naira was quoted at 305 to the dollar at the official interbank window.
"The international money transfer organisations will commence dollar sales to bureau de change operators next week and this will help ease tight liquidity in the market and help the naira to gain some strength," a currency changer said.
ZAMBIA: The kwacha is expected to remain steady against the dollar next week, supported by demand for the local currency as companies prepare to pay taxes due on Jan. 14.
Commercial banks quoted the currency of Africa's No.2 copper producer at 10.025 to the dollar, slightly weaker than 9.9750 a week earlier.
"The FX market continues to experience an uptick in activity as dollar conversions are on the rise," the Zambian branch of South Africa's First National Bank (FNB) said in a note.