Kenyan shilling to weaken, Zambian kwacha also penalized by demand from importers

KENYA

The Kenyan shilling is expected to face pressure in the coming days, but traders said they expected demand for dollars to decline as the Christmas and New Year season progressed.

Commercial banks quoted the shilling at 112.90 / 113.10 per dollar, from last Thursday’s close at 112.85 / 113.05.

NIGERIA

The Nigerian naira was seen flat next week in the unofficial market where it trades more freely, after Nigeria was removed from Britain’s travel “red list”, which could boost trade inflows. the diaspora, traders said.

The currency traded Thursday at 575 naira to the dollar in the parallel market, down slightly from 573 naira last week. In the official market, commercial banks quoted the currency in a range of 409 to 415 against the dollar.

Britain has removed https://www.reuters.com/world/uk/uk-remove-all-countries-covid-travel-red-list-wednesday-2021-12-14 Nigeria and other countries Africans from its COVID-19 redlist trip after adding them following the outbreak of the Omicron variant of the coronavirus.

“I don’t see much appreciation for the withdrawal,” said one trader. “There might be a bit of movement that could create a bit of FX impact.”

TANZANIA

The Tanzanian shilling is expected to experience limited downward pressure next week amid continued demand for hard currencies.

Commercial banks quoted the shilling at an average of 2300/2310 on Thursday, slightly lower from an average of 2295/2305 recorded a week earlier.

“With year-end demand for dollars likely to continue, we expect moderate pressure to persist on the shilling in the coming days,” said Terry Karanja, Treasury partner at Nairobi-based AZA. , adding that the greatest demand for dollars came from the manufacturing and energy sectors.

UGANDA

The Ugandan Shilling is expected to be stable over the next few days with demand mostly stable and some economic activity declining as the holiday season kicks off.

At 11:45 GMT, commercial banks quoted the shilling at 3,560/3 570, unchanged from last Thursday’s close.

“Demand is generally expected to decline as some businesses in sectors such as manufacturing and imports decline,” said an independent forex trader in Kampala.

The currency is expected to trade around 3,560, he said.

ZAMBIA

The kwacha is likely to come under pressure against the dollar. Commercial banks on Thursday listed the copper-producing country’s currency at 16.2301 per dollar against a close of 16.0000 a week ago.

“We expect the Kwacha (…) to trade with a depreciating tone next week,” the National Commercial Bank of Zambia (ZANACO) said in a note.

(Reporting by Clement Uwiringiyimana; Chris Mfula; Elias Biryabarema; Nuzulack Dausen; Chijioke Ohuocha; compiled by Elias Biryabarema; edited by Bernadette Baum and Edmund Blair)

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