LAGOS, April 13 (Naija247news) – Nigeria’s naira is likelyt to strengthen next week on an increase in dollar sales to foreign exchange bureaus. Most other African currencies are likely to be stable.
Nigerian naira is expected to appreciate at the black market next week after the central bank proposed an increased dollar sale to retail currency bureaus .
The central bank is planning to raise dollar sales to bureaux de change to $40,000 from the present $20,000, which will improve liquidity and help support the local currency.
The local currency was quoted at 410 to the dollar on the black market, compared with 398 to the dollar last week. At the official window it closed at 306.10 to the dollar on Wednesday against 306.20 per dollar last week.
The Kenyan shilling may strengthen in the coming week amid weak importer demand and hard currency inflows from portfolio investors and non-governmental organizations, traders said.
At 1100 GMT, commercial banks quoted the shilling at 103.30/40 to the dollar, compared with 103.20/40 at last Thursday’s close.
“Importer demand is diminishing … the upcoming bond auction should attract good inflows,” said a trader from a commercial bank, referring to bond sales that close on Tuesday.
Ghana’s cedi should be stable against the dollar next week on central bank support amid low market activity during the Easter holidays, analysts said.
After touching record lows of 4.7420 to the dollar last month, the cedi recouped and has steadied around 4.2000 since last week, down 0.32 percent since January, according to Reuters data.
The Uganda shilling is expected to trade in a stable range over the next week as businesses close for Easter holidays and mid-month tax payments trim demand from companies for hard currency.
At 1127 GMT commercial banks quoted the shilling at 3,610/3,620, unchanged from last Thursday’s closing level.
“A significant amount of liquidity will be soaked up by tax payments, so we’ll generally see most firms staying on the sidelines,” said a trader at a leading commercial bank.
The Tanzanian shilling is likely remain stable next week as importer demand for hard currency ebbs. Commercial banks quoted the shilling at 2,230/2,240 to the
The kwacha is expected to remain largely flat next week in the absence of any market-moving events after the Easter Holiday.
At 1248 GMT on Thursday, commercial banks quoted the currency at 9.3900 per dollar from 9.4350 a week ago.