UPDATE 1-AFRICA-FX-Ugandan shilling to ease, Ghana's cedi to hold steady

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UPDATE 1-AFRICA-FX-Ugandan shilling to ease, Ghana's cedi to hold steady
Credit: © Reuters.

(Adds Ghana cedi)

KAMPALA, Sept 20 (Reuters) - Kenya's shilling is expected to strengthen against the dollar in the next week to Thursday, while Uganda's shilling will weaken and Zambia's kwacha and Ghana's cedi will hold steady, traders said.


The Kenyan shilling KES= is expected to strengthen in the coming week as market players eye a central bank rate setting meeting on Monday, traders said.

Commercial banks quoted the shilling at 100.70/90 per dollar, compared with 101.10/30 at last Thursday's close.

"We're back to the previous ranges before uncertainty regarding the IMF arrangement ... We're looking out for MPC next week," said a trader from a commercial bank.

The Kenyan shilling had weakened after Kenya's standby arrangement with International Monetary Fund ended last week.


The Ugandan shilling UGX= is forecast to weaken over the coming days on the back of elevated demand from companies in the manufacturing, energy and telecoms sectors.

Commercial banks quoted the shilling at 3,815/3,825 per dollar, weaker than last Thursday's close of 3,800/3,810. Traders forecast that the shilling will trade in the 3,800-3,850 range in the next few days.

"We have seen significant demand over the past couple of days from sectors such as energy, manufacturing and telecoms, I think appetite from these sectors will maintain a weakening trend in the coming days," said a trader from a leading commercial bank.


Ghana's cedi GHS= is expected to be flat next week as the central bank increases its weekly dollar sales to match steady corporate demand, analysts said.

The local unit, which had been under pressure since May, has begun showing signs of stability this week. It was trading at 4.9575 to the dollar by midday on Thursday, compared with 4.9600 a week ago.

"Central bank has been very active in the market, and we expect the supply of the greenback to match the demand both from corporates and traders alike," currency analyst Raphael Adubila said.


The kwacha ZMW= is expected to hold steady on improved hard currency supply as companies prepare to pay salaries and taxes.

Commercial banks quoted the currency of Africa's second-largest copper producer at 11.2500 per dollar, down from a close of 10.5700 a week ago.

"With the deadline for Q3 Provisional Taxes falling on October 10, the market is hoping to see significant dollar inflows to stem the tide," the local branch of South Africa's First National Bank (FNB) said in a note.

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