BUSINESS REVIEW Zambia’s Kwacha could strengthen while Ghana's cedi is expected to hold ground UGANDA ZAMBIA The Ugandan shilling is seen trading with a broadly strengthening tone after the central bank hiked its benchmark lending rate amid worries over inflationary pressures. The Kwacha is expected to remain firm this week as dollar supply from companies that will be paying taxes continues to outweigh demand in the market. On Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 11.4000 per dollar, far stronger than a close of 12.3750 the previous week. Commercial banks quoted the shilling at 3,770/3,780, compared to previous days close of 3,815/3,825. “Current trends seem to indicate that the local unit is poised for further gains should supply continue to outweigh demand,” a local commercial bank, Cavmont, said in a note. A trader at a leading commercial bank said he anticipated the shilling to “benefit from the impact of the rate decision.” GHANA Bank of Uganda last week raised its policy rate by 100 basis points to 10 percent as policymakers cited worries over growing inflationary pressures. The trader said the shilling would oscillate between 3,760-3,800 over the next week. Ghana’s cedi could hold its own against the dollar on the back of hard currency inflows from a $1.3 billion cocoa loan that is expected to boost the central bank’s interbank support capacity, analysts said. The cedi, which had been under pressure for weeks mainly due to global factors, recouped some of its losses this week. It was trading at 4.9500 to the greenback compared with 4.9850 a week ago. NIGERIA Nigeria’s naira is seen stable this week as traders resist weaker quotes on the currency after the unit fell below 364 to the dollar for investors last week due to tight liquidity, traders said. In the fourth quarter the cedi is expected to remain fairly stable “as forex liquidity improves on the back of inflows from cocoa loans,” said currency analyst Joseph Biggles Amponsah. “(Dollar) demand is also not expected to be as strong in the early weeks of (the quarter) The naira has weakened in recent months due to thin dollar liquidity in the wake of low foreign investor interest for local assets and declining foreign reserves. KENYA The Kenyan shilling is expected to remain stable in the coming week due to thin importer and corporate dollar demand meeting with some inflows from the horticulture and tourism sectors. Traders said liquidity had improved last week with lenders quoting to sell dollars at 364, which is expected to continue this week, as importers put off demand for hard currency at weaker levels. Commercial banks quoted the shilling at 100.90/101.00 per dollar. THE NISSAN NP200 HARDWORKING RELIABLE DAY-TO-DAY BUSINESS ESSENTIAL 16,490 Starting from $ Incl VAT www.nissanzambia.co.zm Telephone +260 211 844888 / 848083 / 848084 LUSAKA KITWE NISSAN ZAMBIA, Plot 26799, Kafue Road, Lusaka | | Southern Cross Motors Limited, Plot No. 1340 Miseshi Road, Industrial Area, Kitwe | Telephone +260 212 210035/36 | firstname.lastname@example.org EMAIL: NISSAN ZAMBIA TERMS AND CONDITIONS APPLY PRINTED AND DISTRIBUTED BY PRESSREADER PressReader.com +1 604 278 4604 ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY COPYRIGHT AND PROTECTED BY APPLICABLE LAW
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