African currencies are expected to show mixed performance against the U.S. dollar in the coming week, with Nigeria, Ghana and Kenya likely to remain broadly stable, while Uganda’s currency could strengthen and Zambia’s may face mild pressure, traders and analysts said.
Nigeria
Nigeria’s naira is expected to hold steady, supported by continued intervention from the central bank and controlled dollar demand. On Thursday, the naira was quoted at around 1,445 to the dollar on the official market, little changed from 1,447 a week earlier. On the parallel market, it was trading at about 1,475 to the dollar.
Traders say demand for foreign currency remains present, but regular dollar supply from the central bank is helping to prevent sharp movements. One market participant expects the naira to trade within the range of roughly 1,443 to 1,450 per dollar in the coming days.
Ghana
Ghana’s cedi is also expected to remain near its current level, as foreign-exchange demand eases heading into the end-of-year holiday period. According to LSEG data, the cedi was trading at around 11.35 to the dollar, compared with 11.20 the previous week.
Market participants point out that many businesses are slowing activity as the year comes to a close, which is typically accompanied by reduced demand for dollars. As a result, the cedi is likely to get some short-term relief in the coming weeks.
Kenya
Kenya’s shilling is forecast to trade in a narrow range, continuing the stability it has shown for more than a year. Commercial banks quoted the currency at around 129.30/129.50 to the dollar, slightly firmer than last week’s levels of 129.60/129.90.
Traders say there may be increased activity as companies finalize their year-end positions, but no major shifts in direction are expected.
Uganda
Uganda’s shilling could gain ground in the coming week, supported by lower demand for hard currency and increased inflows from Ugandans living abroad. Banks quoted the currency at around 3,540/3,550 to the dollar, an improvement from last week’s levels of 3,620/3,630.
December usually sees a seasonal drop in demand for foreign exchange, while remittances from the diaspora tend to rise, creating a more supportive environment for the local currency.
Zambia
In contrast, Zambia’s kwacha may come under moderate pressure due to stronger demand for foreign currency, driven by increased imports ahead of the festive season. The kwacha was last quoted at around 23.16 to the dollar, slightly weaker than the 23.12 recorded a week earlier.
Analysts at Access Bank noted that typical year-end import demand for goods and services often increases the need for hard currency, which could make it difficult for the kwacha to strengthen in the short term.
Source:Africa Publicity
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