African currencies week ahead: Kenya's shilling seen under pressure, naira likely to be stable

The Kenyan shilling is expected to come under pressure from short sellers next week while the Nigerian naira is seen steadying on support from the central bank.
KENYA -The Kenyan shilling is seen under pressure in the coming week due to short sellers riding on a wave of excess liquidity in the money market, traders said.
Commercial banks quoted the shilling at 103.20/40 per dollar on Thursday, compared with 103.90/104.10 at last Thursday's close. "The liquidity in the market is massive... we've seen the regulator come in the repo market to mop up liquidity," said a senior trader at a commercial bank.
NIGERIA - Nigeria's naira is expected to be stable next week, supported by central bank interventions for a currency attracting strong demand as offshore investors repatriate profits in the wake of falling debt yields, one trader said.
The naira eased to 362.80 per dollar on Thursday from around 361 two weeks earlier. It was quoted at 360 at exchange bureaus and at 306.85 on the official market, backed by central bank support. Yields on the debt market have fallen especially as Nigeria's central bank cuts back on the sale of government debt to encourage banks to lend to customers and support sluggish economic growth.
"There haven't been much offshore supplies. The central bank has been providing support where required," one trader said.
UGANDA - The Ugandan shilling is likely to edge up on the back of expected inflows of hard currency from offshore investors into the government debt market.
At 0945 GMT, commercial banks quoted the shilling at 3,692/3,702, compared with last Thursday's close of 3,690/3,700. "I anticipate a bit of inflows to come through in the coming days because of the pending auction. It (currency) will draw support from that," said a trader at a leading commercial bank.
The central bank is due to sell Treasury bonds of 3-, and 10-year tenures worth a combined 270 billion Ugandan shillings ($73 million) on August 7.
TANZANIA - Tanzania's shilling is expected to hold steady next week due to a projected balance between inflows and demand for US dollars in the market. Commercial banks quoted the shilling at 2,293/2,303 per dollar on Thursday afternoon, slightly up from 2,295/2,305 recorded last week. "We expect the shilling to remain stable next week," said a senior currency trader at a commercial bank.