Kenyan and Ugandan currencies under strain
Currencies in Kenya and Uganda are facing downward pressure due to high import demand and energy costs. Meanwhile, Ghana's cedi is expected to gain strength, and Zambia's kwacha remains stable.
Why it matters
Currency volatility in East Africa impacts regional trade, inflation, and the cost of living for millions of citizens.
NAIROBI, Oct 15 (Reuters) – The currencies of Kenya and Uganda are expected to be under pressure in the next week to Thursday, while Ghana’s could extend gains and those of Zambia and Nigeria may be little changed, traders said.
Kenya’s shilling is seen losing ground after a long period of stability due to increased dollar demand from oil marketers and general importers, though inflows from charities could limit the losses.
Commercial banks quoted the shilling at 129.75/95 per dollar on Thursday, unchanged from a week earlier.
Uganda’s shilling could edge lower despite this week’s emergency interest rate hike by the central bank.
While the 2.25-percentage-point hike provided an immediate lift to the shilling on Wednesday, traders said weaker export receipts and high energy prices mean the currency will face headwinds again soon.
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