Market News

The Nigerian naira and Zambian kwacha are expected to strengthen further against the US dollar in the coming days, while currencies in Kenya and Uganda are likely to remain stable and Ghana’s cedi could weaken, according to traders quoted by Reuters.

Nigeria

Traders said Nigeria’s currency could extend recent gains as foreign exchange supply improves, supported by strong oil receipts and renewed inflows from foreign investors attracted by high yields on government debt.

The naira was quoted at 1,364 per dollar in intraday trading on Thursday, firmer than 1,388 a week earlier. On the parallel market, it traded around 1,445 per dollar.

Market sentiment has turned decisively positive, one trader said, citing elevated oil prices and clearer foreign exchange rules. Strong demand at upcoming bond auctions could further tighten liquidity and push the currency toward the 1,350 level.

Read Also: Nigeria–Ghana payments go Naira-first as Onafriq, PAPSS pilot instant wallet transfers

Zambia

Zambia’s kwacha is also expected to remain on the front foot, buoyed by improving macroeconomic conditions and resilient copper prices, the country’s key export.

On Thursday, the currency traded at 19.09 per dollar, strengthening from 20.29 a week earlier. Economist Kelvin Chisanga said recent central bank measures restricting foreign-currency usage were adding further support.

Kenya

Kenya’s shilling is expected to hold steady, with dollar demand from manufacturers and oil marketers largely offset by inflows from the tourism and horticulture sectors.

Commercial banks quoted the shilling at 128.90/129.10 per dollar, unchanged from last Thursday’s close. A trader said supply and demand remained evenly balanced.

Uganda

Uganda’s shilling is also seen trading within a narrow range ahead of a central bank interest rate decision expected on Monday.

Traders said activity is likely to remain subdued until the policy announcement. Commercial banks quoted the currency at 3,553/3,563 per dollar, compared with 3,561/3,571 at the end of last week.

Ghana

By contrast, Ghana’s cedi may come under renewed pressure next week due to persistent demand for hard currency, particularly from the energy sector.

Data from LSEG showed the cedi trading at 10.95 per dollar, slightly weaker than 10.90 a week earlier. Andrews Akoto, head of trading at Absa Bank Ghana, said a stronger dollar could persist amid unfilled demand at recent central bank FX auctions.

Another trader said demand for dollars continued to outstrip supply, adding that the cedi was likely to weaken further in the coming sessions.