Currency traders anticipate a mixed performance across several African nations in the coming week, influenced by central bank actions, economic fundamentals, and global factors.
Ghana: The Ghanaian cedi is projected to experience marginal gains against the U.S. dollar. This optimistic outlook is attributed to strong support from the central bank. Improved interbank liquidity and tighter bid-offer spreads suggest increased market activity and confidence in the cedi. Analysts foresee continued liquidity, potentially leading to further appreciation of the local currency due to robust foreign exchange supply.
Zambia: The Zambian kwacha is expected to remain under pressure versus the U.S. dollar. Persistent demand for hard currency outpacing supply is the primary concern. Access Bank analysts note the kwacha’s vulnerability to further losses without significant foreign currency inflows or improvements in underlying macroeconomic conditions.
Kenya: The Kenyan shilling is predicted to maintain a broadly stable stance against the U.S. dollar in the near term. On Thursday, the shilling traded at 129.40/90 per dollar, showing slight depreciation from the previous week’s close of 129.25/75.
Nigeria: The Nigerian naira is also forecast to remain stable. The central bank’s ongoing interventions in the foreign exchange market are seen as crucial in offsetting demand, particularly from foreign investors seeking safer assets amid persistent volatility related to U.S. trade tariffs. The naira was quoted around 1,599 to the dollar in intraday trading on Thursday, strengthening from the previous week’s closing quote of 1,630. Street trading saw the naira at 1,610 to the dollar. Traders believe the central bank’s actions will keep the naira around the 1,600 level in the coming week.
Uganda: The Ugandan shilling is expected to hold steady against the U.S. dollar. A predicted slowdown in dollar demand during the shortened Easter holiday period is anticipated to provide support. Commercial banks quoted the shilling at 3,660/3,670, appreciating from last Thursday’s close of 3,680/3,690. An independent foreign exchange trader in Kampala anticipates the shilling to trade within the 3,650-3,670 range in the coming week, citing reduced business activity due to the Easter break, with markets closed in Uganda on Friday and Monday.