Week-ahead forecast: Ugandan, Tanzanian currencies seen weakening, Kenyan shilling steady
SEE ALSO :Why worst isn't over for shillingA trader from a leading commercial bank said players were anticipating a surge in appetite for dollars from fuel importers keen to replenish stocks depleted by peak demand during December holidays. TANZANIA The Tanzanian shilling is expected to depreciate in the coming week due to the high demand for U.S. dollars currently prevailing in the market. At 1135 GMT on Thursday, commercial banks quoted the shilling at 2,323 per U.S. dollar, down from a close of 2,295 a week ago. “There is a lot of demand for dollars now in the market that has not been covered,” one commercial bank trader said.
SEE ALSO :Shilling firms against dollarKENYA The Kenyan shilling is expected to hold steady in the coming week due to U.S. dollar inflows from offshore investors buying government debt and thin importer demand amid high liquidity in the local money market, traders said. At 0926 GMT, commercial banks quoted the shilling at 101.70.90 per U.S. dollar, compared with 102.10/30 at last Thursday’s close. “This month we have a new issue for a maximum of forty billion. I’d attribute the current move to weak dollar demand,” a senior commercial bank trader said, referring to a new issue of treasury bonds. ZAMBIA