Zambia’s kwacha is under pressure due to higher demand for foreign currency. In contrast, Nigeria’s naira, Ghana’s cedi, and Uganda’s shilling remain stable. Nigeria’s naira is supported by central bank interventions, while Ghana’s cedi benefits from low demand and Uganda’s shilling draws strength from coffee exports. Overall, these trends reflect diverse economic conditions across the region.
Zambia’s currency, the kwacha, is expected to remain under pressure due to persistent demand for foreign currency exceeding supply. On Thursday, the kwacha was valued at 28.36 per dollar, an increase from 28.15 per dollar the previous week. According to the Zambia National Commercial Bank, “near term, the kwacha is likely to continue posting minor losses on the back of thin supply.”
In contrast, Nigeria’s naira is predicted to remain stable within a range due to ongoing central bank interventions, which include regular dollar sales. The naira was quoted at 1,501 naira per dollar in the official market on Thursday, showing a slight improvement from 1,508 naira the prior week. A local trader remarked, “I expect the naira to trade between 1,490 naira and 1,510 naira range next week.”
Ghana’s cedi is expected to remain stable as foreign currency demand is low, supported by central bank efforts. The cedi was priced at 15.45 to the dollar on Thursday, slightly down from 15.50 last week. Sedem Dornoo, a senior trader at Absa Bank Ghana, stated, “The cedi traded relatively stable against the dollar in the past week.”
Uganda’s shilling is anticipated to trade steadily, bolstered by coffee export revenues. Commercial banks quoted the shilling at 3,676 to 3,686 per dollar, reflecting minor fluctuations from the previous week. A trader noted the significant impact of coffee exports, indicating that the shilling would likely fluctuate within the 3,650 to 3,680 range in the upcoming week.
In conclusion, while Zambia’s kwacha faces challenges due to excess demand for foreign currency, other currencies in the region such as Nigeria’s naira, Ghana’s cedi, and Uganda’s shilling are expected to remain stable, supported by various economic factors. Central bank interventions and sector-specific factors play crucial roles in these currency fluctuations. Traded values indicate a period of relative steadiness for these currencies amidst ongoing economic conditions.
Original Source: www.brecorder.com
