African currencies week ahead: Kenya’s shilling, Zambian kwacha under pressure

NAIROBI: The Kenyan shilling is expected to come under pressure next week amid higher demand for the US dollar, while the Zambian kwacha could also take a hit from imports and worries over debt.

KENYA — The Kenyan shilling is likely to come under pressure due to a higher appetite for hard currencies.

On Thursday, commercial banks quoted the shilling at 107.00/107.20 against the US dollar compared to last Thursday’s close of 106.70/106.90.

“The shilling has been weakening (in) last couple of days due to bigger dollar demand and next week I expect the shilling to be under pressure,” said a trader at one bank.

TANZANIA — Tanzania’s shilling is expected to hold steady next week as demand for US dollars from energy and manufacturing importers is offset by foreign aid inflows.

Commercial banks quoted the shilling at 2,310/2,324 on Thursday, the same levels as recorded a week earlier.

ZAMBIA — The kwacha is likely to face more headwinds against the US dollar in the coming week, largely due to importer demand and pressure arising from debt servicing.