African currencies week ahead: Kenyan, Tanzanian, Ugandan shillings to hold steady

NAIROBI: The Kenyan, Ugandan and Tanzanian shillings are expected to hold steady against the dollar in the week to next Thursday, traders said.

KENYA - The Kenyan shilling is expected to trade flat over the coming days amid slow trade, traders said.

Commercial banks quoted the shilling at 108.75/95, compared to last Thursday's close of 108.85/109.05.

"We've been at these levels for the last one month and I expect it to remain like that even next week," said a trader at one commercial bank.

UGANDA - The Ugandan shilling is expected to stay in a tight range in the coming days as some players in the interbank market unwind positions in the face of subdued demand for hard currency.

Commercial banks quoted the shilling at 3,735/3,745, unchanged from last Thursday's close.

"Appetite is pretty thin, I think some players may possibly trim their (hard currency) holdings," said one independent forex trader in the capital Kampala.

TANZANIA - Tanzania's shilling is expected to hold steady next week as importer dollar demand matches the inflows from agricultural exports.

Commercial banks quoted the local currency at 2,314/2,324 on Thursday from an average of 2,313/23 recorded a week earlier.

"We foresee ... a pickup in business and trade, with demand for dollars from oil marketing companies, manufacturers and telecoms balanced by agriculture commodities inflows, particularly cashew nut," Terry Karanja, a treasury associate at AZA, a Nairobi-based FX trading firm, said.