The Nigerian Naira and Zambian Kwacha are expected to remain on a firmer footing against the US Dollar in the coming days, while Kenya and Uganda’s currencies are likely to trade sideways. Ghana’s Cedi, meanwhile, may face renewed pressure.
In Nigeria, better foreign exchange liquidity is helping the naira recover ground. Stronger oil earnings and fresh interest from foreign investors, attracted by high returns on government debt, have boosted dollar inflows into the market. Earlier today, the Naira was trading at 1 364 to the Dollar, an improvement from 1 388 a week ago.
Market watchers say that if these inflows continue, the currency could hold on to its recent gains in the near term.
Zambia’s Kwacha is also showing resilience. Support from stable copper prices, along with improving economic fundamentals, is keeping the currency on the front foot. The Kwacha traded at 19.09 to the Dollar earlier today, compared with 20.29 at the same time last week.
Elsewhere, the Kenyan and Ugandan Shillings are expected to remain broadly stable, reflecting balanced supply and demand for foreign currency. Ghana’s Cedi, however, may struggle as economic pressures persist.
–Reuters/ChannelAfrica–
