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AFRICA-FX-Uganda shilling, Zambia kwacha to weaken


Reuters


NAIROBI, March 14 (Reuters) - Kenya's shilling and Zambia's kwacha are expected to weaken against the dollar in the next week, traders said.

KENYA

The Kenyan shilling is expected to come under pressure due to increased demand for dollars from the energy and manufacturing sectors, with commercial banks also keeping an eye on an upcoming central bank monetary policy meeting, traders said.

"(Dollar) demand can be traced to the energy and manufacturing sector," said a senior trader from one commercial bank.

UGANDA

The Ugandan shilling is also expected to weaken due to increased dollar demand from foreign-owned firms preparing to pay dividends.

Commercial banks quoted the shilling at 3,715/3,725, compared to last Thursday's close of 3,695/3,705.

"Historically around March-April we tend to see an uptick in (dollar) demand from firms ... this might put some pressure on the shilling," said Benon Okwenje, trader at Stanbic Bank.

TANZANIA

Tanzania's shilling is expected to hold steady due to a slight decline in dollar demand and the beginning of the peak tourism season which increases foreign currency inflows.

Commercial banks quoted the shilling at 2,340/2,350 per dollar compared with last Thursday's close of 2,360/2,370.

"We expect to see more stability," a senior trader at one commercial bank in Dar es Salaam said.

ZAMBIA

The kwacha is likely to soften a bit in the coming week due to an anticipated resurgence in demand for hard currency in Africa's second-largest copper producer.

Commercial banks quoted the kwacha at 11.9500 per dollar from a close of 12.0000 a week ago.

"I think it will not strengthen further but will go back to its normal level which is around 12.13 to the dollar," independent financial analyst Maambo Hamaundu said.

Debt servicing costs are putting pressure on Zambia's central bank reserves, Bank of Zambia Governor Denny Kalyalya said during a monetary policy committee briefing last month.






This article appears in: Politics , Stocks , World Markets




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