African currencies week ahead: Kenya's shilling seen under pressure

Kenya's shilling is expected to come under pressure and Zambia's kwacha and Uganda's shilling to be range-bound over the coming week as the region grapples with the economic fall-out of the coronavirus outbreak.

ZAMBIA - The kwacha is likely to hold in a range against the US dollar next week as market players sell hard currency for kwacha to settle their local obligations. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 18.5200 per dollar from a close of 18.6240 a week ago.

UGANDA - The Ugandan shilling is seen trading in a narrow range over the next few days, drawing some support from the removal of excess liquidity by the central bank. At 0945 GMT commercial banks quoted the shilling at 3,765/3,775, against last Thursday's close of 3,780/3,790.

KENYA - The Kenyan shilling is seen coming under pressure in the coming week due to the coronavirus-related slowdown. Commercial banks quoted the shilling at 106.00/20 per dollar, the same as last Thursday's close.

NIGERIA - Nigeria's naira is seen little changed next week on low demand as a government lockdown to slow the spread of the coronavirus exacerbates dollar shortages, traders said. The naira traded at 387.65 per dollar in the over-the-counter market on Thursday on thin dollar liquidity.