21/03/2025
Zambia's kwacha is projected to weaken against the U.S. dollar in the upcoming week, facing challenges amid high dollar demand and limited inflows.
Traders indicate that the kwacha will struggle as other regional currencies maintain stability. Kenya's shilling is seen as steady, supported by hard currency inflows from non-governmental organizations and diaspora remittances. As of 0802 GMT, commercial banks reported the shilling at 129.25/129.45, matching last Thursday's closing rate.
A trader in Nairobi noted that charitable organizations typically convert local currency at month’s end for operational expenses, which could balance the market due to some additional demand.
In Nigeria, the naira is expected to remain range-bound, aided by central bank dollar sales designed to enhance liquidity in the foreign exchange market. Traders reported the naira at about 1,535 to the dollar in intraday trading, slightly recovering from a closing level of 1,549 naira the previous week.
A trader expressed expectations for the naira to stabilize, crediting the central bank’s interventions that alleviated volatility. Also, Ghana's cedi continues to show resilience, supported by ongoing central bank actions and foreign inflows, maintaining a stable rate of 15.45 to the dollar.
Sedem Dornoo, a senior trader at Absa Bank, highlighted the cedi’s stability, attributing it to a liquid foreign exchange market. Uganda’s shilling is also forecasted to trade steadily, buoyed by hard currency inflows from charities and a lack of strong demand from importers. Commercial banks quote the shilling at 3,660/3,670, with expectations it will remain within a 3,640-3,680 range against the dollar.
