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UPDATE 1-AFRICA-FX-Uganda's shilling and Zambia's kwacha to firm

Published 23/01/2020, 18:18
UPDATE 1-AFRICA-FX-Uganda's shilling and Zambia's kwacha to firm
USD/KES
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USD/NGN
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USD/ZMK
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(Adds Nigerian naira)

NAIROBI, Jan 23 (Reuters) - Uganda's shilling and Zambia's

kwacha are both expected to strengthen slightly against the U.S.

dollar in the next week while Kenya's shilling and the Nigerian

naira will hold steady, traders said.

KENYA

The Kenyan shilling KES= is expected to remain stable in

the week ahead, with commercial banks quoting the currency at

100.85/101.05 per dollar, compared with 100.95/101.15 at last

Thursday's close.

"There could be a rise in demand with the new month around

the corner ... but there is ample dollar supply in the market,"

said a trader for one commercial bank.

UGANDA

The Ugandan shilling is seen trading with a strengthening

bias on the back of month-end hard currency inflows from

non-governmental organisations looking to pay salaries and other

expenses.

At 0805 GMT commercial banks quoted the shilling at

3,670/3,680, unchanged from last Thursday's close.

A trader at a leading commercial bank said the market was

expecting flows of hard currency from charities and some

commodity exporters that typically come in the last days of the

month.

"The local currency will probably move up a little

(strengthen) on the back of that," he said.

The local currency, he said, is likely to swing in the

3,650-3,670 range in the coming week.

ZAMBIA

The kwacha ZMW= is likely to make some marginal gains

against the U.S. dollar as companies buy the local currency to

meet month-end obligations.

On Thursday commercial banks quoted the currency of Africa's

second-largest copper producer at 14.5000 per dollar, against a

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close of 14.6250 a week ago.

"It is biased towards a bit of appreciation because

corporates are preparing to pay salaries and other month-end

obligations," a senior commercial bank trader said.

NIGERIA

Nigeria's naira NGN= is seen stable next week as traders await

the result of a central bank treasury auction on Wednesday which

could impact market liquidity, traders said.

The naira was quoted at around 361 to the dollar on

Thursday, the same level it fetched in the over-the-counter

market last week. The currency was quoted at 306.95 on the

official market, supported by the central bank.

Traders said the market has been on bid this week but that

dollar sales by exporters has provided some support.

"People are looking to buy between 361 and 362.5 but with

the result of the OMO sales we may see improved flows," one

trader said.

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