Zambian and Ghanaian currencies seen under pressure
Currencies in Zambia and Ghana are expected to weaken against the US dollar due to high demand and economic pressures. Conversely, the Ugandan shilling is showing signs of strength, while the Kenyan and Nigerian currencies remain stable.
Why it matters
Currency fluctuations in these African nations impact inflation, import costs, and the effectiveness of central bank monetary policies.
LUSAKA, July 30 (Reuters) – The currencies of Zambia and Ghana are expected to weaken against the dollar next week, while Uganda’s shilling is expected to firm and Kenya’s and Nigeria’s currencies are seen broadly stable, traders said.
Zambia’s kwacha will likely be under pressure as demand for hard currency picks up and market participants remain cautious ahead of the country’s presidential and parliamentary elections on August 13.
On Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 18.95 per dollar, compared with 18.54 a week ago.
Ghana’s cedi could edge lower against the dollar next week on persistent corporate dollar demand pressures from the energy and commerce sectors.
LSEG data showed the cedi trading at 11.66 to the dollar on Thursday, compared with 11.60 a week earlier.
“We expect the greenback to maintain its edge against the local unit in the week ahead,” one trader said.
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