NAIROBI, Sept 24 (Reuters) - Kenyan and Nigerian currencies
are seen on the ropes next week, while Zambia's awaits direction
from Friday's budget presentation and Uganda and Tanzania's hold
steady.
KENYA
Kenya's shilling KES is expected to weaken next week as
demand for dollars begins to build up ahead of the end of the
month, when firms typically meet their hard currency
obligations, and due to oil importers.
Commercial banks quoted the shilling at 108.40/60 per
dollar, compared with last week's close of 108.30/50.
"End of month demand is picking up, and going forward I am
expecting good demand from the oil sector," a trader from one of
the commercial banks said.
NIGERIA
Nigeria's naira NGNFX=BDCN could weaken on the black
market next week after the central bank unexpectedly cut
interest rates this week to boost credit as it works to
stimulate an economy tilting towards recession, traders said.
The naira eased to 467 per dollar on the unofficial black
market on Thursday, down 0.4% from a week earlier.
The central bank on Tuesday cut interest rates by 100 basis
points to 11.5% to support an economy that contracted in the
second quarter. Analysts fear the liquidity impact from the rate
cut could pile pressure on the currency. The naira opened at 386.13 on the over-the-counter spot
market NAFEX=FMDQ , widely quoted by investors and importers,
on volumes in excess of $69 million on Wednesday.
The naira was quoted at 381 per dollar on the official
market, which is supported by the central bank.
ZAMBIA
The kwacha ZMW= is likely to remain range-bound against
the U.S. dollar as market players await Finance Minister Bwalya
Ng'andu's budget speech on Friday.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 19.9000 per dollar
from a close of 19.8600 a week ago.
"Kwacha performance going into next week will be determined
by what the minister of finance will say in tomorrow's budget,"
one commercial bank trader said.
UGANDA
The Ugandan shilling UGX= is seen trading broadly stable
over the coming days as inflows from charities and some
commodity exporters help provide support to the local currency.
At 0938 GMT commercial banks quoted the shilling at
3,700/3,710, compared to last Thursday's close of 3,685/3,695.
Some non-governmental organisations (NGOs) looking to meet
their typical month-end operational costs will be converting
some of their dollar holdings for local currency, said a trader
with one of the commercial banks.
"We'll probably have some flows from there (charities) and
commodity exporters also receive higher inflows as outstanding
payments for the month are cleared by their customers," the
trader said.
TANZANIA
Tanzania's shilling TZS is expected to hold steady next
week as inflows from agricultural exports match U.S. dollar
demand from manufacturing and oil importers.
Commercial banks quoted the shilling at 2,315/25 on
Thursday, unchanged from last week's close.
"With inflows from coffee, cashew nuts and other
agricultural exports, we anticipate a stable shilling in the
near term," a trader from one of the FX trading firms said.