Africa FX - bullish Kwacha sup­ported by con­ver­sions.

Zambian Business Times - - FRONT PAGE -

This week will see a bullish Kwacha sup­ported by dol­lar con­ver­sions to meet lo­cal cur­rency obli­ga­tions as the Kenyan shilling comes un­der pres­sure from mon­thend im­porter de­mand obli­ga­tions. Be­low is a sum­mary of this week’s ex­pec­ta­tions.

Zam­bian Kwacha - ZMW

Sup­ported by dol­lar con­ver­sions to meet kwacha salary obli­ga­tions, the lo­cal unit is ex­pected to bullishly hold at cur­rent lev­els. The Kwacha en­joyed firm sup­port from tax sea­son last week, ral­ly­ing to 9.8 lev­els for a unit of dol­lar. Trad­ing range is ex­pected with 9.75-9.85 per dol­lar, ZBT Fi­nan­cial An­a­lyst Kond­wani Phiri said.

This week will see a bullish Kwacha sup­ported by dol­lar con­ver­sions to meet lo­cal cur­rency obli­ga­tions as the Kenyan shilling comes un­der pres­sure from mon­thend im­porter de­mand obli­ga­tions. Be­low is a sum­mary of this week’s ex­pec­ta­tions.

Zam­bian Kwacha - ZMW

Sup­ported by dol­lar con­ver­sions to meet kwacha salary obli­ga­tions, the lo­cal unit is ex­pected to bullishly hold at cur­rent lev­els. The Kwacha en­joyed firm sup­port from tax sea­son last week, ral­ly­ing to 9.8 lev­els for a unit of dol­lar. Trad­ing range is ex­pected with 9.75-9.85 per dol­lar, ZBT Fi­nan­cial An­a­lyst Kond­wani Phiri said.

Ugan­dan Shilling - UGX

The Ugan­dan shilling is ex­pected to trade with a broadly sta­ble tone in the week fu­elled by par­ing of po­si­tions by com­mer­cial banks amid thin­ning ap­petite for hard cur­rency.

Benoni Ok­wenje, trader at Stan­bic Bank, said the mar­ket was hav­ing an “in­ter­bank sell­ing” of dol­lars as play­ers go short on the Amer­i­can cur­rency amid slump­ing im­porter ap­petite. Ok­wenje said the shilling would os­cil­late within a 3,730-3,750 range in the com­ing days.

Kenyan Shilling - KES

The Kenyan shilling could come un­der pres­sure against the dol­lar in the com­ing week due to month-end im­porter de­mand amid ex­cess liq­uid­ity in the lo­cal money mar­ket, traders said. Com­mer­cial banks quoted the shilling at 100.65/85 per dol­lar, com­pared with 100.70/90 at last Thurs­day’s close.

“End month de­mand might start pick­ing up ... there is a lot of shilling liq­uid­ity in the mar­ket, overnight in­ter­est rates are very low,” said a se­nior trader from a com­mer­cial bank.

Nige­rian Naira - NGN

Nige­ria’s naira is seen sta­ble at be­tween 361 and 362 next week, the same level it traded at this week, as an over-the-counter trad­ing sys­tem masks liq­uid­ity pres­sure on the forex mar­ket, traders said.

Traders said the naira has been sup­ported by in­flows from ex­porters as for­eign in­vest­ment trickle in. The cen­tral bank plans to start auc­tion­ing the Chi­nese yuan for im­ports from Asia to re­duce de­mand for dol­lars.

On the of­fi­cial mar­ket, the dol­lar is sell­ing for 305.85 naira, sup­ported by cen­tral bank in­ter­ven­tion.

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