The Kenyan shilling is expected to be steady against the dollar in the week ahead supported by hard currencies sent home for the holidays by Kenyans who live abroad, while the Zambian kwacha will also be stable.
KENYA – The Kenyan shilling is seen stable in the coming week with tightening liquidity in the local money market and inflows from diaspora remittances offering support against dollar demand from merchandise importers, traders said.
Commercial banks quoted the shilling at 101.75/95 per dollar, compared with 102.65/85 at last Thursday’s close.
“People are unloading their long dollar positions to fund Kenya shillings,” said a senior trader from one commercial bank.
NIGERIA – Nigeria’s naira could weaken next week on the over-the-counter market mainly due to a slowdown in the supply of dollars from exporters and foreign investors, traders said.
The naira eased to 362.75 on Thursday from a range of 362-362.50 where it was trading last month.
The currency was quoted at 306.95 on the official market, supported by the central bank. Nigeria operates a multiple currency regime.
“The market is tight. If the tightness continues (the currency) may weaken to 363,” one trader said.
ZAMBIA The kwacha is expected to remain in its current ranges against the US dollar next week due to matching demand and supply of hard currency.
On Thursday, commercial banks quoted the currency of Zambia, Africa’s second-largest copper producer, at 14.9000 per dollar, down from a close of 14.5000…