ACCRA, Jan 30 – Currencies across sub-Saharan Africa are expected to move in different directions next week, with Ghana’s cedi likely to weaken further, while Nigeria’s naira and Kenya’s shilling are seen remaining broadly stable, according to traders.
In Ghana, the cedi is under pressure from sustained corporate demand for foreign exchange, particularly from the energy, services, and construction sectors. The currency traded at 10.97 per dollar on Thursday, compared with 10.85 a week earlier, based on London Stock Exchange data. Traders say demand continues to exceed supply despite periodic support from central bank spot auctions.
In Nigeria, the naira is expected to remain steady, supported by foreign portfolio inflows from a recent bond auction and relatively muted dollar demand. The currency traded at 1,388 per dollar on the official market on Thursday, strengthening from 1,419 a week earlier. In the parallel market, it was quoted at about 1,470 per dollar.
Kenya’s shilling is also expected to remain stable, supported by balanced supply and demand. Commercial banks quoted the currency at 128.80 to 129.10 per dollar, little changed from last week.
Meanwhile, Zambia’s kwacha is expected to maintain its firm tone, supported by strong foreign exchange inflows from copper exports. The currency strengthened to 20.29 per dollar from 20.53 a week earlier. Higher copper output and firm global prices continue to support Zambia’s currency outlook, with copper accounting for more than 70% of export revenues.
