Cedi and Kwacha Face Downward Pressure as Dollar Demand Persists
Quidah is an online platform that connects investors with curated opportunities and expert insights on Africa’s emerging markets, while offering businesses promotional services, partnership facilitation, and market intelligence to attract capital and grow their operations.
Industries
The Ghanaian cedi and Zambian kwacha weakened against the U.S. dollar Thursday amid sustained foreign-currency demand from importers and offshore investors, while Kenya's shilling, Nigeria's naira, and Uganda's shilling held steady, Reuters reported December 11.
In Ghana, the cedi traded at 11.46 per dollar, up from 11.35 the previous Thursday, despite the Bank of Ghana selling $100 million at its latest FX auction against bids exceeding $221 million. A Stanbic Bank Ghana trader said dollar demand would remain firm into next week.
Zambia's kwacha fell to 23.58 per dollar from 23.16, with Access Bank stating in a December 11 note that the imbalance is likely to persist ahead of the holidays. Kenya's shilling traded at 129.05/45 per dollar, slightly stronger than 129.20/60; Nigeria's naira held at 1,447 official/1,480 street; and Uganda's shilling was at 3,550/3,560 versus 3,540/3,550, supported by remittances and central bank sales offsetting seasonal demand.
