Ghanaian and Zambian currencies seen under pressure
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The Ghanaian and Zambian currencies are expected to come under pressure in the next week to Thursday, while those of Kenya and Uganda should be broadly stable, traders said.
In Ghana, the cedi is seen extending recent losses against the dollar because corporate foreign-currency demand remains persistent. LSEG data showed the cedi trading at 11.03 to the dollar on Thursday, compared with 11.01 a week earlier, while Absa Bank Ghana’s Andrews Akoto said strong FX demand from the energy, commerce and manufacturing sectors was likely to keep the dollar bid tone firm as supply stayed tight despite decent interbank turnover.
He added that bids at the last central bank FX auction on Tuesday surpassed $401 million, with only $110 million filled, leaving a large backlog of unmet demand in the market.
Kenya’s shilling, by contrast, is expected to remain steady after foreign-currency demand eased following the U.S.-Iran ceasefire and a more optimistic mood in global financial markets. The currency traded at 129.05/129.25 per dollar on Thursday, little changed from last week’s close of 129.10/129.40.
Uganda’s shilling is also forecast to stay relatively stable, supported by dollar inflows from coffee exporters and a slowdown in FX appetite. Commercial banks quoted the currency at 3,695/3,705 to the dollar, compared with 3,687/3,697 a week earlier, and a trader said the shilling was likely to trade in a 3,670-3,710 range in the coming days.
Zambia’s kwacha may come under pressure next week because copper, the country’s main foreign-exchange earner, has been volatile. Commercial banks quoted the currency of Africa’s second-largest copper producer at 19.40 to the dollar, from 19.46 a week earlier, while Access Bank said the recovery in global copper prices had helped cushion the local currency even though the metal was likely to remain unstable in the near term.
