Ugandan and Ghanaian currencies seen extending losses
Currencies in Uganda and Ghana are expected to weaken further due to high import demand and regional uncertainty. Meanwhile, the Kenyan shilling remains stable, and the Zambian kwacha is supported by copper prices.
Why it matters
Currency volatility in African markets impacts inflation, trade costs, and foreign investment attractiveness.
KAMPALA, Sept 3 (Reuters) – The currencies of Uganda and Ghana could weaken further in the next week to Thursday, while those of Kenya and Zambia are expected to remain broadly stable, traders said.
Uganda’s shilling is seen maintaining its recent losing streak in the days ahead on the back of strong appetite for hard currency from energy importers.
At 0918 GMT commercial banks quoted the shilling at 3,780/3,790, compared to last Thursday’s close of 3,750/3,760.
“I expect this demand to persist in the coming days because of the volatility and uncertainty of the situation in the Middle East,” said an independent foreign exchange trader in the capital Kampala.
Ghana’s cedi could weaken again against the U.S. dollar next week, due to continued strong import-driven demand for hard currency from businesses on the interbank market.
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