East and West African Currencies Show Mixed Trends as Import Pressures Rise
In Nairobi, the Kenyan shilling traded at 129.00/129.50 per dollar on Thursday, maintaining the same range as last week. However, dealers suggest that rising demand from key sectors like food processing and manufacturing could cause a slight drop in the shilling’s value in the coming week.
“We could see a slight weakening of the shilling, but not in a major way,” said a Nairobi-based currency trader.
Nigeria: Naira Under Strain Despite Central Bank Efforts
The Nigerian naira, though recently supported by the central bank, faced renewed pressure during intraday trading. It stood at ₦1,596 to the dollar on the official market, a mild gain from ₦1,608 the previous week. On the streets, however, it traded at around ₦1,630, as demand from importers kept rising.
“Second-quarter import pressures could offset stabilisation efforts,” one dealer warned.
Uganda: Shilling Steady on Export Inflows
In Uganda, the local currency remained steady, trading at 3,645/3,655 per dollar, slightly firmer than the previous week. Traders said minimal buying activity and healthy export inflows helped keep the shilling stable.
“Activity on the buying side is very slow, while inflows are quite significant,” a Kampala-based trader noted.
Zambia: Kwacha Slips Slightly but Outlook is Stable
The Zambian kwacha weakened to 27.00 per dollar from 26.50 last week. Despite this dip, analysts expect stability in the near term as companies begin hard-currency sales ahead of VAT payment deadlines.
Ghana: Cedi Continues to Strengthen
Ghana’s cedi bucked the regional trend, firming up to 12.40 per dollar from 13.15 a week ago. This improvement came as corporate demand dropped, the central bank sustained its interventions, and foreign inflows remained strong.
“We expect this trend to persist in the coming sessions,” said Chris Nettey, Head of Trading at Stanbic Bank Ghana.
Overall, while most currencies on the continent face typical headwinds from import pressures and monetary policy challenges, Ghana’s cedi is standing out with a solid performance driven by strategic management and steady inflows.
