DAR ES SALAAM, Aug 15 (Reuters) – Kenya’s and Tanzania’s
shillings are expected to hold steady against the dollar in the
next week to Thursday, as will Zambia’s kwacha, traders said.
The Kenyan shilling is expected to be stable,
supported by inflows from offshore investors buying government
debt and tightening liquidity in the local money market, traders
Commercial banks quoted the shilling at 103.15/35, compared
with 103.00/20 at last Thursday’s close.
“Beginning of a new credit reserve ratio cycle and upcoming
bonds could offer the shilling some support,” said a trader from
one commercial bank.
The Tanzanian shilling is expected to hold steady,
with dollar demand from the energy and manufacturing sectors
being matched by inflows from the tourism and agriculture
Commercial banks quoted the shilling at 2,293/2,303, the
same level as last Thursday’s close..
“The demand is very steady with more coming from the
manufacturing, and energy sectors. We see this demand matching
the inflows … with more inflows coming from tourism and
agriculture exports especially cotton,” a foreign exchange
trader at one commercial bank in Dar es Salaam said.
The Ugandan shilling is seen trading stable over the
next few days after the central bank’s decision to leave its
benchmark lending rate unchanged.
Commercial banks quoted the shilling at 3,690/3,700,
unchanged from last Thursday’s closing level.
“After the central bank’s neutral stance, I don’t expect any
major moves in the market in terms of position taking,” said a
trader at a leading commercial bank.
On Thursday the central Bank of Uganda left its benchmark
rate unchanged at 10 percent amid low inflation.
The kwacha is next week expected to remain
range-bound due to tight liquidity in the money markets.
Commercial banks quoted the currency of Africa’s
second-largest copper producer at 13.0200 per dollar from a
close of 13.0000 a week ago.
“The kwacha is likely to continue trading within current
levels, with movements being expected on either side depending
on demand and supply factors,” Cavmont Bank said in a note.
(Reporting by Nuzulack Dausen,John Ndiso,Elias Biryabarema and
Chris Mfula; Compiled by George Obulutsa
Editing by Alexandra Hudson)