Nigeria’s Naira is expected to strengthen slightly against the US dollar next week on the parallel market, while several other African currencies were expected to hold steady, Reuters reports.
NIGERIA
The Nigerian naira is seen appreciating slightly against the dollar on the parallel market next week, although the official rate will remain steady around the 197.50 level.
On the parallel market, the naira was quoted at 320 to the dollar on Thursday, compared with 326 last week, spurred by tight liquidity and increased dollar supply.
“We see the tightening of liquidity by the central bank curbing speculations on the forex market and reduce pressure on the naira,” Aminu Gwadabe, head of Nigeria association of bureaux de change said.
GHANA
Ghana’s cedi is expected to remain steady next week amid subdued corporate activity after the Easter weekend holiday.
The local unit was trading at 3.8400 to the dollar by 1120 GMT on Thursday, compared to 3.8550 last week. It is 1 percent weaker so far this year.
“We expect a calm session after holidays as local importers settle down after the long Easter holidays,” said Accra-based Dortis Research analyst Joseph Biggles Amponsah.
TANZANIA
The Tanzanian shilling is likely to be steady next week, helped by a slowdown in dollar demand by importers.
Commercial banks quoted the shilling at 2,182/2,192 to the dollar on Thursday, unchanged from a week ago.
“The shilling has been trading flat for almost a month, I don’t see it moving anywhere unless we get some solid inflows of dollars,” said William Francis, a dealer at Commercial Bank of Africa Tanzania.
ZAMBIA
The kwacha is likely to firm against the dollar next week as companies convert foreign exchange pay their regular end-of-month payments.
At 0820 GMT on Thursday, commercial banks quoted the currency of Africa’s second-biggest copper producer at 11.3300 to the dollar, up from a close of 11.3400 a week ago.
“Markets remain flooded with the (dollars) as most corporates continue to convert,” analysts at BancABC, the local branch of Atlas Mara, said in a note.
KENYA
Kenya’s shilling was expected to weaken slightly next week on the back of the usual pick-up in corporate demand for dollars towards the end of the month.
At 1245 GMT, commercial banks quoted the shilling at 101.45/65 to the dollar, compared with last Thursday’s close of 101.40/50. One trader said he did not expect the shilling to weaken beyond 102.00 to the dollar next week.
Sources: Reuters
