AFRICA-FX-Nigerian, Kenyan and Zambian currencies seen below stress

Nov 23 (Reuters) – Nigeria’s naira, Kenya’s shilling and Zambia’s kwacha are anticipated to be below stress within the subsequent week to Thursday, whereas Ghana’s cedi and Uganda’s shilling will most likely be secure, merchants mentioned.

KENYA

Kenya’s shilling is predicted to increase its gradual march decrease as foreign-currency demand ramps up from all sectors earlier than the top of the yr.

Business banks quoted the shilling at 152.70/90 per U.S. greenback, in contrast with final Thursday’s closing charge of 152.20/40. The shilling hit a brand new file low on Thursday of 152.75/95, LSEG information confirmed.

NIGERIA

Nigeria’s naira will probably lose floor on the parallel market , because the central financial institution is but to clear excellent foreign-currency quantities owed in ahead offers.

Nigeria has almost $7 billion in foreign exchange forwards which have matured and which corporates purchased from native banks.

The naira bought for 1,160 to the greenback in road buying and selling the place it trades freely on Thursday, weaker than 1,130 naira per week in the past. The unit traded round 800 naira per greenback in official buying and selling on Thursday afternoon , after falling as little as 1,051 naira in early commerce.

“I count on (trade) charges to hover between 1,160 naira and 1,200 naira on the parallel market subsequent week,” one dealer mentioned. “We had anticipated that the central financial institution will repay excellent forwards … (however) they paid little in bits.”

GHANA

Ghana’s cedi is forecast to stay secure subsequent week on account of anticipated foreign exchange inflows from a cocoa syndicated mortgage, merchants mentioned.

Ghana’s cocoa advertising board COCOBOD plans to finalise an $800 million syndicated mortgage with banks by the top of the month.

On Thursday the cedi was buying and selling at 11.9000 to the greenback, in comparison with 11.9000 ultimately Thursday’s shut, LSEG information confirmed.

“We count on it to be comparatively secure within the coming week, following information that COCOBOD has accomplished the extremely anticipated $800 million syndicated mortgage,” mentioned Sedem Dornoo, a senior dealer at Absa Financial institution Ghana.

“We count on the pair to stay vary sure for the rest of the yr,” he added.

UGANDA

The Ugandan shilling is seen buying and selling in a secure vary with inflows of hard-currency from remittances serving to lend assist.

Business banks quoted the shilling at 3,785/3,795 to the greenback, in comparison with final Thursday’s shut of three,775/3,785.

“We now have been seeing substantial quantities of (greenback) inflows from remittances coming wherein I believe will proceed to offer assist properly into mid December,” mentioned an unbiased overseas trade dealer within the capital Kampala.

He mentioned the shilling was prone to oscillate within the 3,750-3,790 vary within the coming days.

ZAMBIA

Zambia’s kwacha is prone to stay below modest stress because the market continues to expertise subdued foreign-exchange provide and excessive demand.

On Thursday, the foreign money was buying and selling at 23.3500 to the greenback from 23.0695 on the shut of enterprise per week in the past, in response to LSEG information.

Delays in restructuring the nation’s debt had affected anticipated foreign-exchange flows, weighing on the kwacha, Financial institution of Zambia Governor Denny Kalyalya mentioned on Wednesday.

Our Requirements: The Thomson Reuters Belief Ideas.