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AFRICA FX - Kenya shilling, Zambian kwacha and Nigeria's naira to weaken - NASDAQ
Adds Nigeria's naira
KAMPALA, Feb 18 (Reuters) - Kenya's shilling, Zambia's kwacha and Nigeria's naira are expected to weaken against the dollar in the next week to Thursday, traders said.
KENYA
Kenya's shilling KES= is expected to come under pressure due to month-end dollar demand from importers.
Commercial banks quoted the shilling at 109.45/65 to the dollar, compared with last Thursday's close of 109.35/55.
"We might see it come under pressure as we approach the end of the month because of expected usual end moth demand by the importers," a trader at one commercial bank.
UGANDA
The Ugandan shilling UGX= is seen trading in a broadly stable range amid a general slow uptake of dollars both in the interbank market and from importers.
Commercial banks quoted the shilling at 3,660/3,670, unchanged from last Thursday's close.
"The demand side for dollars has been lethargic for a while and I don't reckon there will be a significant change in the near term," said an independent forex trader in the capital Kampala, who expected the shilling to trade in the 3,650-3,680 range in the week ahead.
TANZANIA
Tanzania's shilling TZS= is expected to remain stable donor inflows from development partners and foreign investors supporting dollar demand.
Commercial banks quoted the shilling at 2,311/2,329 on Thursday, nearly the same levels from last week’s close of 2,314/2,324.
"For the coming week, we foresee a stable shilling on the back of inflows from the EU and investors," Terry Karanja, a treasury associate at AZA, a Nairobi-based foreign exchange trading firm said.
NIGERIA
The naira NGN= is seen easing on the spot market after it lost ground on the derivatives market and hit a record intra-day low on the over-the-counter market this week, traders said.
The naira fell to 423.15 per dollar this week on the spot market, quoted by importers and foreign investors.
It was quoted at 381 naira on the official market, a level set in July and backed by the central bank. The currency sold at 478 naira on the black market on Thursday.
Dollar scarcity hit Nigeria after last year's oil price crash slashed government revenues, piling pressure on the currency and funnelling demand to the black market.
ZAMBIA
The kwacha ZMW= will likely continue to weaken on limited foreign exchange inflows amidst rising expenditures, especially on imports of farming inputs.
On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 21.6100 per dollar compared to 21.5350 at the close of business a week ago.
"Fiscal consolidation remains challenging given the significant uncertainty about the evolution of the escalating COVID-19 infections and the debt restructuring process," the central bank said in a statement on Wednesday.
(Reporting by Clement Uwiringiyimana, Nuzulack Dausen, Elias Biryabarema, Chijioke Ohuocha and Chris Mfula; compiled by George Obulutsa; Editing by Ramakrishnan M. & Aditya Soni)
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