African currencies showed mixed performance this week, with Nigeria’s naira expected to weaken further amid investor sell-offs and limited dollar supply, while Ghana’s cedi continues its upward rally, supported by strong foreign exchange inflows. Meanwhile, Kenya’s shilling remains stable, Uganda’s shilling faces mild pressure, and Zambia’s kwacha is gaining ground on improved dollar inflows.
Nigeria
The naira is projected to depreciate further next week as foreign investors offload local assets due to global risk aversion driven by escalating trade tensions between the United States and China, coupled with restricted dollar supply from the Central Bank of Nigeria (CBN).
On Thursday, the naira traded at ₦1,475 per dollar on the official market, compared to ₦1,455 a week earlier, while street traders quoted it at around ₦1,495 per dollar.
“We have seen further depreciation this week, largely because of the renewed U.S.-China trade tensions,” a trader said, adding that some investors were pulling out of local assets.
Ghana
Ghana’s cedi is expected to extend its recent rally, buoyed by steady foreign exchange inflows and active central bank interventions. According to data from the London Stock Exchange Group, the cedi traded at GHS 10.90 per dollar on Thursday, up from GHS 12.30 a week earlier.
“The currency is likely to remain range-bound next week, supported by improved interbank liquidity following the new central bank auction model,” said Andrews Akoto, Head of Trading at Absa Bank Ghana.
He added that while FX demand from key sectors persists, a recent $150 million central bank auction recorded only 39% uptake, suggesting weaker demand pressure. Additional inflows from the mining sector and the central bank’s continued market support have also narrowed the bid-offer spread, traders said.
Kenya
Kenya’s shilling is expected to hold steady next week, supported by robust dollar inflows from remittances, tea, and horticultural exports. Commercial banks quoted the shilling at KES 128.95/129.35 per dollar, unchanged from last week’s close. The Central Bank of Kenya credited the shilling’s stability to confidence in the domestic economy and sustained inflows.
Uganda
The Ugandan shilling is likely to face mild weakening pressure as increased hard currency demand from interbank traders and importers adds strain. The unit traded at UGX 3,465/3,475 per dollar on Thursday, compared to UGX 3,425/3,535 a week earlier. Traders said importers are stocking up on dollars for holiday season shipments, while some interbank players replenish their positions after months of strong shilling performance.
Zambia
Zambia’s kwacha is expected to continue appreciating next week, supported by stronger hard currency inflows from copper exports and signs of stability in mining output. On Thursday, commercial banks quoted the kwacha at ZMW 23.06 per dollar, up from 23.18 a week earlier.
Access Bank noted that higher global copper demand and firmer prices have boosted Zambia’s dollar earnings, helping to strengthen the kwacha.
Source:Africa Publicity
