Zambia’s kwacha remains under pressure due to high demand for foreign currency, while Nigeria’s naira, Ghana’s cedi, and Uganda’s shilling are expected to show relative stability. The naira is influenced by central bank interventions, the cedi by weak dollar demand, and the shilling by support from coffee exports. Overall, Zambia faces challenges while other currencies stabilize.
In the coming week, Zambia’s kwacha is expected to face continued pressure due to high demand for foreign currency, with insufficient supply. As of Thursday, the kwacha is quoted at 28.36 per dollar, slightly lower than the previous week’s 28.15 per dollar. Analysts at Zambia National Commercial Bank predict minor losses for the kwacha in the near term as demand continues to outweigh supply.
Conversely, Nigeria’s naira is anticipated to remain relatively stable, hovering within a range due to ongoing dollar sales by the central bank aimed at stabilizing the currency. Recently, the naira traded at 1,501 to the dollar in the official market, representing a slight improvement from the previous week’s 1,508 naira. A trader projected that the naira will likely remain between 1,490 and 1,510 naira next week, noting that the government aims to maintain the exchange rate around 1,500 naira due to its budget implications.
Ghana’s cedi is expected to maintain its current stability attributed to low foreign currency demand and strong central bank intervention. As reported, the cedi stood at 15.45 to the dollar on Thursday, a minor decrease from last week’s 15.50. A senior trader suggested that the currency will continue to trade in a similar range, bolstered by balanced supply and demand for foreign currency.
In Uganda, the shilling is predicted to remain stable, supported by increased coffee export flows. Commercial banks quoted the shilling at 3,676/3,686 to the dollar, slightly above last week’s closing of 3,665/3,675. A trader commented that coffee exports are likely to influence the currency’s movement in the near term, estimating that the shilling could fluctuate between 3,650 and 3,680 in the following week.
In summary, while Zambia’s kwacha is set to experience downward pressure due to demand surpassing supply, other currencies in Nigeria, Ghana, and Uganda are projected to maintain relative stability. Nigeria’s naira is expected to stabilize within a specific range due to central bank interventions, while Ghana’s cedi and Uganda’s shilling are anticipated to remain stable amidst subdued foreign currency demand and supportive export activities, respectively.
Original Source: www.brecorder.com
