The Ghanaian and Zambian currencies are expected to strengthen against the dollar in the next week to Thursday, while Nigeria’s is likely ​to remain broadly stable, traders said.

GHANA
Ghana’s cedi could draw support from ‌improved foreign-currency liquidity following continued central bank interventions.

LSEG data showed the cedi trading at 11.30 to the dollar, compared to 11.80 a week earlier.

“We expect the cedi to ​trade stronger against the dollar in the week ahead, supported by ​ebbed corporate FX demand and improved interbank liquidity,” said Andrews ⁠Akoto, head of trading at Absa Bank Ghana.

“Recent central bank interventions have ​effectively cleared the persistent corporate FX demand that weighed on the currency in ​May. This softening demand for the greenback is underscored by the central bank FX auction on Tuesday, where bids reached only 44% of the total amount on offer,” he ​added.

ZAMBIA
Zambia’s kwacha should gain ground due to robust copper prices, supportive central ​bank policies and positive market sentiment.
Commercial banks quoted the currency of Africa’s second-largest copper producer ‌at ⁠17.54 per dollar, stronger than 17.92 a week earlier.

“The (mining) sector continues to anticipate robust full-year growth, which should help offset the negative impact of higher oil prices on the current account. Further supporting the bullish case is the ​substantial improvement in ​economic fundamentals,” said ⁠Diego Barnuevo, a market analyst at financial services firm Ebury.

NIGERIA
Nigeria’s naira is expected to be steady, underpinned by dollar ​sales by the central bank.

LSEG data showed the naira ​at 1,360 ⁠to the dollar in intraday trading, the same as a week earlier.

On the street market the currency traded around 1,390 to the dollar.

“We expect the naira ⁠to remain ​stable as the central bank continues to ​sell dollars and keep up its aggressive OMO (Open Market Operations) programme to mop up naira,” one ​trader said.

REUTERS