African currencies week ahead: Kenyan, Zambian, Nigerian currencies seen under pressure

NAIROBI: The currencies of Kenya, Zambia and Nigeria are expected to come under pressure versus the US dollar next week, according to traders, while Tanzania's and Uganda's hold steady.

KENYA - Kenya's shilling is expected to continue to weaken against the dollar on the back of demand from importers across all sectors and slow inflows from horticulture and agriculture exporters and remittances.

Commercial banks quoted the shilling at 109.95/110.15 to the dollar, compared with last Thursday's close of 109.75/109.95.

ZAMBIA -- The kwacha will likely remain weak versus the dollar next week as demand for hard currency continues to exceed supply.

On Thursday, commercial banks quoted the currency of Zambia, one of the world's largest copper producers, at 20.9700 per dollar from a close of 20.9204 a week ago.

TANZANIA -- Tanzania's shilling is expected to hold steady versus the dollar as inflows from agricultural exports offset pressure on the currency from demand for manufacturing and energy imports.

Commercial banks quoted the shilling at 2,314/24 on Thursday, the same levels recorded at last week's close.

UGANDA -- The Ugandan shilling is seen in a stable range against the dollar in the coming days, underpinned by some inflows from coffee exporters.

At 1001 GMT commercial banks quoted the shilling at 3,695/3,705, compared to last Thursday's close of 3,700/3,710.

NIGERIA -- The naira is expected to be weaker on the black market in the week ahead, traders said on Thursday, as central bank policies restrict access to the official window, thereby funnelling demand to the parallel market that holds less than 5% of trades.

The naira was quoted at 487 per dollar on the black market on Thursday, a level it touched previous day. The currency was quoted on the official market at 381 per dollar, a level it has been at since July.