Market News

GHANA

Ghana’s cedi is expected to further lose ground against the dollar as increased demand from the energy, manufacturing and commerce sectors for imports is likely to outstrip supply.

London Stock Exchange Group (LSEG) data showed the cedi trading at 10.99 to the dollar on Thursday, compared to 10.95 a week earlier.

“FX demand from local corporate accounts remains elevated and is likely to weigh on the local currency in the week ahead,” said Andrews Akoto, head of trading at Absa Bank Ghana.

At the central bank’s FX auction on Tuesday, bids totalled $357 million against $110 million on offer. The central bank sold $1 billion in FX intermediation flows in March and plans to sell a similar amount in April.

Ronald Mensah, trader at Stanbic Bank Ghana, said mining-related inflows and central bank auctions could limit the mild depreciation pressure on the cedi.

UGANDA

The Ugandan shilling is seen trading with a weakening tone in the coming days, undercut by strong demand from energy importers, traders said.

At 1102 GMT commercial banks quoted the shilling at 3,747/3,757, compared to last Thursday’s close of 3,712/3,722.

“We are seeing elevated appetite from the energy importers because of the events in the Middle East and high crude prices,” said a trader at one commercial bank in the capital Kampala.

He said the shilling was likely to trade in the 3,740-3,780 range against the dollar in the coming days.

KENYA

Kenya’s shilling is expected to hold steady but could weaken due to increased demand for dollars from all sectors of the economy and slowing inflows from remittances, barring any sales from the central bank.

Commercial banks quoted the shilling at 129.95/130.25 compared with last Thursday’s close of 129.80/130.10.

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“Dollar demand is there. We are seeing a lot of demand from all sectors. Inflows are there for now, but I think there will be a dent in diaspora remittances (from the Middle East),” a trader from one commercial bank said.

NIGERIA

Nigeria’s naira is seen range-bound in the coming week, cushioned by strong oil receipts from higher oil prices despite seasonal demand for foreign tuition and medical payments.

LSEG data showed the unit was quoted at 1,378 to the dollar in intraday trading on Thursday, strengthening from 1,384 a week ago.

The currency was changing hands at 1,420 to the dollar in street trading.

“We see the naira range-bound between 1,376 and 1,390 as higher oil prices offer some psychological support… but the key risk remains an escalation in Middle East war which could push the dollar higher on safe-haven demand and offset any upside from stronger oil prices,” one trader said.

ZAMBIA

The kwacha is likely to hold steady against the dollar next week, supported by hard currency sales to meet tax payments and participation in the bond market.

Commercial banks on Thursday quoted the currency of Africa’s second-largest copper producer at 19.53 per dollar from 19.02 per a week earlier.

“Looking to next week, the kwacha is likely to find support from provisional tax payments due on 10th April, alongside participation from offshore investors in the local bond market,” Access Bank aid in a note.

However, upside risks remain, particularly if geopolitical tensions persist, Access Bank said.