AFRICA-FX: Most currencies seen steady except Zambia’s

March 28, 2025

The Kenyan, Ugandan, Nigerian and Ghanaian currencies are expected to be broadly stable against the dollar in the next week to Thursday, while Zambia’s is seen under pressure, traders said.

KENYA

Kenya’s shilling is expected to hold its ground because of subdued foreign-currency demand from the manufacturing sector and fuel importers through the start of the month.

Commercial banks quoted the shilling at 129.15/129.65 to the U.S. dollar, compared to 129.20/129.50 at last Thursday’s close.

NIGERIA
Nigeria’s naira is seen stable in the coming week, supported by central bank dollar sales.

The naira was quoted at 1,538 to the dollar on the official market on Thursday compared with last week’s quote of 1,535 naira.

The currency was changing hands at 1,550 to the dollar in street trading on Thursday.

“We expect the naira to be relatively stable around 1,530/40 to (the) dollar,” one trader said. “There’s lots of demand but people are conscious of the level they want to deal.”

GHANA
Ghana’s cedi is expected to stay steady as demand for foreign currency is largely matched by supply.

LSEG data showed the cedi trading at 15.45 to the dollar on Thursday, the same as last Thursday’s close.

“The cedi held its ground against the dollar throughout the week, with balanced demand and supply keeping it steady, backed by central bank intervention. We anticipate this stability to persist in the coming week,” Chris Nettey, head of trading Stanbic Bank Ghana, said.

Sedem Dornoo, senior trader Absa Bank Ghana, said the market was showing signs of ample liquidity, with flows coming from both local and offshore participants.

“We reckon the (dollar/cedi) pair will remain range-bound in the near term as liquidity remains,” he said.

UGANDA
Uganda’s shilling is forecast little-changed, with the potential for some gains on month-end hard-currency inflows from non-governmental organisations.

“These inflows are expected to keep the local unit broadly stable with a marginal bias on the firming side,” a trader said.

He forecast a trading range of 3,650-3,670 against the dollar over the next week.

Commercial banks quoted the shilling at 3,660/3,670 to the dollar, unmoved from last Thursday’s close.

ZAMBIA
Zambia’s kwacha could slip as foreign-currency demand outweighs supply.

Increased imports of food and electricity have contributed to the depreciation of Zambia’s currency in recent months.

The kwacha was quoted at 28.75 from 28.80 a week ago.