African currencies week ahead: Nigeria vote to drive naira, other currencies stable

Nigeria's currency could pick up next week if the country's election scheduled for this weekend goes smoothly, while other African currencies are expected to remain stable. NIGERIA - The naira is expected to find its rhythm next week once a delayed presidential election scheduled for this weekend is over, traders said. The currency traded at 361.50 per dollar on the over-the-counter market for investors on Thursday, a level it has traded at for more than two weeks.
The naira weakened this week on the forward market after elections due last weekend were postponed by a week, just hours before polls had been due to open. "The market is eyeing elections. The outcome will play a role in where the naira trades. If it goes smoothly we expect more inflows," one trader said. ZAMBIA - The kwacha is likely to remain stable against the US dollar next week due to foreign exchange inflows from portfolio investors and companies, even as demand for hard currency from importers remains high.
At 1222 GMT on Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 11.9400 per dollar, from a close of 11.9500 a week ago. "The upcoming bond auction, together with month-end obligations, could see the unit trade under 11.900. Nonetheless, demand for dollars from the energy sector continues," the local branch of South Africa's First National Bank (FNB) said, referring to a bond auction scheduled for Feb. 22.
KENYA - The Kenyan shilling is seen stable against the US dollar next week due to supply from diaspora remittances and offshore investors buying government debt helping meet end of month dollar demand from the energy sector, traders said. Commercial banks quoted the shilling at 100.10/30 per dollar, unchanged from last Thursday's close. "The dollar supply is massive... Demand is currently muted but end-month demand is expected in the last week of the month," a trader from one commercial bank said.
UGANDA - The Ugandan shilling is seen trading in a stable range versus the US dollar over the coming week given lacklustre appetite for hard currency from players in the interbank market and merchandise importers. At 0955 GMT commercial banks quoted the shilling at 3,665/3,675, the same level as last Thursday's close. "Some buyers are preferring to stay on the sidelines because they anticipate a cheaper dollar as inflows stay healthy," said a trader at one commercial bank.
The local currency has traded mostly stable around 3,665-3,700 in recent weeks, propped up by inflows from commodity flows, offshore investors and charities. TANZANIA - The Tanzanian shilling is expected to hold steady or appreciate against the US dollar next week, supported by the ongoing cashew nut sale season that began last month. At 1244 GMT on Thursday, Reuters data showed the Tanzanian currency at 2,325 per dollar, the same level at which it closed a week ago.
"The market is expected to get more sales from cashew nuts exports. This will either keep the shilling stable or appreciate a little bit," Mohamed Laseko, a senior forex trader at CRDB Bank Plc said.