The currencies of Zambia and Ghana are expected to weaken against the dollar next week, while Uganda's shilling is expected to firm and Kenya's and Nigeria's currencies are seen broadly stable, traders said.
ZAMBIA
Zambia's kwacha will likely be under pressure as demand for hard currency picks up and market participants remain cautious ahead of the country's presidential and parliamentary elections on August 13.
On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 18.95 per dollar, compared with 18.54 a week ago.
GHANA
Ghana's cedi could edge lower against the dollar next week on persistent corporate dollar demand pressures from the energy and commerce sectors.
LSEG data showed the cedi trading at 11.66 to the dollar on Thursday, compared with 11.60 a week earlier.
"We expect the greenback to maintain its edge against the local unit in the week ahead," one trader said.
"FX demand has remained firm, driven by the energy and commerce sectors, as well as corporate demand linked to dividend repatriation. Central bank FX supply has moderated in July compared with June," the trader added.
Another trader said the unmet dollar demand from central bank auctions could add to the pressure on the cedi in coming sessions.
However, the trader expected the IMF disbursement of the final $371 million of the $3 billion Extended Credit Facility (ECF) programme to support the cedi in the near term.
UGANDA
The Ugandan shilling is expected to firm, helped by some month-end dollar inflows from commodity exporters and charities.
Commercial banks quoted the shilling at 3,745/3,755, compared to last Thursday's close of 3,755/ 3,765.
A trader at a leading commercial bank in the capital Kampala said the market was receiving typical month-end inflows of hard currency from some commodity exporters and charities.
"So currently the momentum is on the firming side because of those inflows and also we're seeing a slowdown in (dollar) demand from energy importers," the trader said.
KENYA
The Kenyan shilling is expected to hold broadly stable after some losses in recent days, underpinned by month-end diaspora inflows.
Commercial banks traded the shilling at 129.15/30 per dollar, compared with last Thursday's close of 129.40/60.
Traders said the shilling weakened late last week and into the start of this week but has since corrected on the back of month-end diaspora flows.
NIGERIA
Nigeria's naira is seen range-bound, supported by central bank dollar sales after the currency eased this week.
The naira was quoted at 1,373 to the dollar on the official market on Thursday, traders said, compared with last week's quote of 1,369 naira.
The currency was changing hands at 1,405 to the dollar in street trading on Thursday.
"Next week, I expect (FX) rates to hover around 1,370 and 1,378 levels," one trader said. "Anything that triggers depreciation beyond 1,390, you would see the central bank increase participation to provide liquidity."
