This archive report was first published on 14 November 2019.
Published on November 14, 2019, by Reuters, East African currencies are expected to show varying trends in the coming week.
The Kenyan shilling is seen firm due to dollar inflows from foreign investors buying stocks and government debt, subduing dollar demand from merchandise importers. Commercial banks quoted the shilling at 102.00/20 on Thursday, compared with 102.80/103.00 at last Thursday's close.
According to a senior trader from one commercial bank, 'demand from the corporate side is being met by adequate dollar inflows... market positivity on banking stocks.'
Uganda's shilling could strengthen in coming days, buoyed by inflows of hard currency from non-governmental organisations and offshore investors buying government debt. At 1019 GMT, commercial banks quoted the shilling at 3,690/3,700, compared to last Thursday's close of 3,697/3,707.
The Tanzanian shilling is expected to appreciate next week due to an increase in dollar inflows from cashew nuts. Commercial banks quoted the shilling at an average of 2,300/2,310 on Thursday, slightly firmer from 2,301/2,312 recorded a week earlier.
However, Zambia's kwacha is expected to remain under pressure against the U.S. dollar next week on diminishing hard currency supply. On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 13.9750 per dollar versus 13.6250 a week ago.
