Cedi, kwacha weaken on persistent dollar demand; East African currencies steady
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The Ghanaian cedi and Zambian kwacha fell against the U.S. dollar on Thursday amid sustained foreign currency demand from importers and offshore investors, while Kenya's shilling, Nigeria's naira and Uganda's shilling held firm, Reuters reported on December 11.
In Ghana, the cedi traded at 11.46 per dollar, deteriorating 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 weakened 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.
The divergence reflects robust remittance inflows and central bank interventions supporting East African currencies against seasonal importer pressures weighing on Ghana and Zambia.
