Ghana cedi under pressure, Uganda shilling on front foot, naira stable: traders
By Aboki Forex —
Ghana's currency is set to weaken against the US dollar this week, while Uganda's shilling is expected to strengthen. Zambia's kwacha, Nigeria's naira and Kenya's shilling are expected to remain broadly stable, according to traders.
Ghana cedi
The cedi is under pressure as corporate demand for foreign currency continues to exceed available supply. Ronald Mensah, a trader at Stanbic Bank Ghana, said renewed dollar demand from both local companies and offshore investors had put the currency under pressure.
Dollar liquidity is expected to remain tight, with central bank spot auctions continuing to provide an important source of foreign-currency supply. Demand at the latest central bank FX auction exceeded the allocation, highlighting significant unmet dollar demand.
Uganda shilling and Zambia kwacha
Uganda's shilling is expected to strengthen, supported by month-end foreign-currency inflows from charities and commodity exporters. Commercial banks quoted the currency at a stronger level than a week earlier, traders said.
Zambia's kwacha is expected to remain around current levels, supported by strong copper prices. The currency has shown little reaction to the country's recent general election.
Nigeria naira
Nigeria's naira is expected to remain broadly stable, supported by foreign-currency inflows from offshore investors. The naira traded at official and parallel market rates, with the parallel market around a weaker level.
A trader expects the official exchange rate to trade within a range over the coming week, citing healthy FX inflows. This stability, if maintained, should keep FX planning for Nigerian businesses more predictable in the near term.