Respective government debt offerings to rally Kwacha and Cedi as strong import cover news gives Shilling momentum...
LUSAKA, March 26 ( ZBT) – Zambian Kwacha, Kenyan Shilling and Ghanaian Cedi - GHS to firm up this week.
Zambian Kwacha remain firm this week
The currency in Africa’s second largest producer of copper the Kwacha will remain strong this week as players sell dollars to fund Kwacha obligations that fall due at month end. The Kwacha is forecast to close the month at ZMW9.4/USD. Zambia will offer ZMW950million of treasury bills on Thursday 29 March which could attract offshore participation in the 1-year currently Africa’s most attractive short term treasury offering paying 17.5%.
Kenyan Shilling markets price in strong import cover data
Currency in East Africa’s largest economy Kenya the Shilling will trend bullish as investor flows are stimulated by foreign investor interest in equity stocks, and general positive sentiments on the back of the Central Bank of Kenya – CBK’s strong forex reserve position translating to 6months import cover a 2- month improvement from start of year position. Commercial banks quoted the shilling at 100.85/101.05 to the dollar, compared with 101.20/40 at last Thursday 22 March close.
Ghanaian Cedi – GHS markets to price in 3yr bond sale this Thursday
The cocoa producer’s currency the Ghana’s cedi is forecast to rally this week ahead of the 3yr bond offering that will attract offshore participation. Cedi could touch 4.40 in the week, also on reports that parliament has okayed a EUR13- million loan for the Bank of Ghana – BOG to support a proposed depositor’s insurance fund.