The African currencies of Ghana and Zambia are expected to decline against the US dollar in the coming week, while those of Kenya, Nigeria, and Uganda are likely to remain stable, according to traders’ forecasts.
In Ghana, the cedi may slip because offshore investors and local businesses continue to demand foreign currency for imports. The cedi was trading at 11.46 per dollar, compared with 11.35 last Thursday. Strong demand at the central bank’s FX auction—bids totalling over $221 million against a $100 million allocation—has added pressure to the currency. Traders expect the cedi to stay under pressure as robust dollar demand persists.
Zambia’s kwacha faces similar pressure, with hard‑currency demand outpacing supply. The kwacha was quoted at 23.58 per dollar, down from 23.16 a week ago. Limited hard‑currency availability and heightened demand ahead of the festive holidays are likely to keep the kwacha under pressure.
In contrast, Kenya’s shilling is projected to extend its long‑running period of stability, with commercial banks quoting it at 129.05/45 per dollar. Nigeria’s naira is expected to trade within a narrow range; dollar sales by the central bank and steady remittance inflows are offsetting seasonal import demand. The naira was quoted at 1,447 per dollar on the official market, versus 1,445 a week earlier. Uganda’s shilling is also seen as steady, with hard‑currency demand balanced by inflows from diaspora workers. Commercial banks quoted the shilling at 3,550/3,560 per dollar, compared with last Thursday’s close of 3,540/3,550, and traders expect it to trade in the 3,530‑3,560 range in the coming days.
Overall, African currencies are set for mixed fortunes in the coming week. The declines in Ghana and Zambia are attributed to high foreign‑currency demand, while the stability of Kenya, Nigeria, and Uganda reflects a balance between demand and supply. These fluctuations may have significant implications for trade and investment in the region.
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