NAIROBI: The Nigerian naira is expected to weaken against the dollar in the week ahead mainly due to shortages of hard currencies while the Zambian kwacha will also be under pressure.
NIGERIA - Nigeria's naira could weaken on the black market next week as a dearth of foreign exchange on the official market spills over into the parallel market, traders said.
The naira eased 1.08% to 465 naira per dollar on the unofficial black market on Thursday.
The central bank has resumed the sale of dollars to foreign investors stuck in Nigeria following a coronavirus-induced oil price crash, which drove volatility in the currency market.
The naira traded at 386.05 on the over-the-counter spot market, widely quoted by investors and importers, on volumes in excess of $280 million on Wednesday.
The naira was quoted at 381 per dollar on the official market, which is supported by the central bank.
KENYA - The Kenyan shilling, is expected to remain under pressure against the dollar next week.
The currency of East Africa's biggest economy was trading at 108.35/55 per dollar on Thursday, compared with 108.40/60 a week earlier.
"If it gets support from the central bank, it could stabilise a bit and if not, we could continue to see the weakening trend," said a currency trader at a commercial bank.
ZAMBIA - The kwacha is likely to remain under pressure next week due to a drop in the supply of hard currency, amid growing demand for dollars.
On Thursday, commercial banks quoted the currency of Africa's second largest copper producer at 19.8600 per dollar, down from a close of 19.7500 a week ago.
Hard currency sales by mining companies has dropped and demand was rising to pay for health, energy and agricultural sector imports, traders said.
UGANDA - The Ugandan shilling is expected to inch down as a planned re-opening of the country's international borders, which were closed due to the coronavirus crisis, boosts importer appetite for hard currency.
At 1034 GMT, commercial banks quoted the shilling at 3,687/3,697, compared with last Thursday's close of 3,695/3,705.
International flights will resume on Oct. 1 for the first time since March.
"Resumption of international travel will possibly jerk up demand (for dollars)," said a trader at one commercial bank.
TANZANIA - Tanzania's Shilling is expected to hold steady next week as the demand for dollars by importers is evenly matched by the available supplies of the hard currency.
Commercial banks quoted the Shilling at 2,315/2,325 per dollar, unchanged from its closing level last Thursday.
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