The currencies of several African countries are expected to remain stable in the coming week, with Uganda’s shilling projected to strengthen slightly against the United States dollar, according to traders. Market watchers said the shilling would be supported by increased hard-currency inflows at the end of the month. In contrast, the currencies of Ghana, Nigeria, Kenya, and Zambia are forecast to remain steady as their central banks and economic conditions continue to provide balance between demand and supply.
Uganda’s shilling, which closed at 3,495/3,505 to the dollar last Thursday, was quoted by commercial banks at 3,497/3,507 on Thursday this week. Traders explained that inflows from commodity exporters and non-governmental organisations were helping to boost the local currency. A trader said, “We are seeing some hard-currency flows from commodity exporters and NGOs, and being month-end days, we anticipate this trend to dominate.” The shilling is projected to trade between 3,470 and 3,510 to the dollar in the coming days.
In Ghana, the cedi is forecast to hold steady as the central bank continues its weekly dollar auctions on the interbank market. The currency traded at 12.30 to the dollar on Thursday compared to 12.22 last week, according to LSEG data. Andrews Akoto, Head of Trading at Absa Bank Ghana, said, “The currency is likely to hold steady in the coming week as recent central bank auction amounts on offer have exceeded the total bids allocated. We expect demand from local corporate accounts to persist though, particularly from the services and manufacturing sectors.” Another trader noted that foreign-currency demand and supply are currently balanced, which would help the cedi stay stable in the short term.
Nigeria’s naira also remained within a narrow range, helped by interventions from the Central Bank of Nigeria amid rising demand for the U.S. dollar. The naira was quoted at 1,491 to the dollar on the official market on Thursday, slightly stronger compared with 1,498 last week. In the parallel market, the naira exchanged at 1,500 to the dollar, reflecting persistent dollar demand on the streets. A trader told reporters, “I expect the central bank to continue to help. All things being equal, I think rates will remain stable next week trading at around 1,485 to 1,490 levels.”
Kenya’s shilling is forecast to maintain its long-running period of stability. The currency was quoted at 129.00/129.40 to the dollar on Thursday, the same level as last week, according to LSEG data. Market participants said the shilling has remained steady due to a combination of reduced import demand and steady inflows from remittances and agricultural exports.
In Zambia, the kwacha is projected to remain near current levels unless major developments emerge from the country’s national budget presentation scheduled for Friday. Commercial banks quoted the kwacha at 23.97 per dollar on Thursday compared with 23.55 a week earlier, reflecting mild depreciation. Traders said market sentiment may shift depending on the fiscal and monetary policy directions announced in the budget.
Overall, analysts said the outlook for African currencies remains stable in the near term, but external pressures such as global oil prices, U.S. interest rates, and local fiscal challenges could affect exchange rates in the months ahead.
