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Kenyan, Ghanaian and Zambian currencies to firm, Nigeria’s to ease – Reuters

HomeUncategorizedKenyan, Ghanaian and Zambian currencies to firm, Nigeria’s to ease – Reuters
Kenyan, Ghanaian and Zambian currencies to firm, Nigeria’s to ease – Reuters

NAIROBI, April 7 (Reuters) - 
Kenyan, Ghanaian and Zambian currencies are expected to gain
ground in the next week to Thursday, while Nigeria's will
weaken, traders said.

Kenya's shilling is seen firming after weakening on
news that the central bank said it had placed Chase Bank under
receivership for 12 months to protect depositors, creditors and
the public.
At 1131 GMT, commercial banks quoted the shilling at
101.25/35 to the dollar, compared with last Thursday's close of
"We expect the shilling to regain its lost ground in the
coming days as the Chase Bank issue dies out," said a senior
trader at one commercial bank.

The Ugandan shilling is forecast to trade broadly
stable over the next one week, supported by weak demand and a
liquidity mop up by the central bank.
At 1101 GMT commercial banks quoted the shilling at
3,355/3,365, stronger than last Thursday's close of 3,365/3,375.
"I would say we're not likely to see corporate buyers come
back on the demand in a big way," he said. The central bank's
removal 430 billion shillings ($128.17 million)from the
interbank via a repo would offer extra support, a trader from a
leading commercial bank said, adding the shilling was likely to
trade in the 3,350-3,380 range.

The kwacha is expected to remain firm versus the
dollar next week due to increased dollar supply from investors
attracted to high-yielding government bonds.
At 0803 GMT on Thursday, commercial banks quoted the
currency of Africa's second-biggest copper producer at 10.2829
per dollar, up from a close of 11.1000 a week ago.
"Stakeholders seek to take advantage of the high investment
rates," the local branch of South Africa's First National Bank
(FNB) said, predicting a break of the 10.000 psychological

The cedi could record its first year-to-date gain in
recent years after weeks of consistent rally on renewed investor
confidence underpinned by improved foreign exchange inflows,
analysts said.
Commercial banks quoted the cedi 3.8290 to the dollar by 1040
GMT on Thursday, compared to 3.8350 last week and down less than
1 percent since January.
"In the week ahead the cedi should be able to rally to record
a year-to-date gain, the first in recent years, on high general
optimism about the cedi' s future trajectory, at least in the
short term," said Biggles Amponsah of Accra-based Dortis
Ghana on Monday appointed Abdul-Nashiru Issahaku as governor
of the central bank on Monday, promoting him from the deputy
position to replace Henry Kofi Wampah, who retired at the end of
March, four months earlier than expected.

The naira is expected to weaken a little on the
parallel market but seen flat on the official interbank market
next week as businesses await the signing of Africa's biggest
economy 2016 budget by President Mohammadu Buhari.
The local currency was flat at 320 to the dollar on the
parallel market, while at the official window the currency was
trading around the peg rate of 179 to the dollar.
"There is presently a lull in the forex market because of
the non release of the 2016 budget by the government, but we see
transactions picking up as soon as the government reveal its
economic direction through the budget next week," one currency
trader said.

(Reporting by George Obulutsa, Oludare Mayowa, Chris Mfula,
Kwasi Kpodo and Elias Biryabarema; Compiled by George Obulutsa
Editing by Jeremy Gaunt)

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