LAGOS, Oct 15 (Reuters) - Nigeria's naira is seen buying and selling on an excellent keel amid a tr
LAGOS, Oct 15 (Reuters) – Nigeria’s naira is seen buying and selling on an excellent keel amid a transfer to curb transactions whereas the Kenyan shilling might agency as tax funds trim demand.
NIGERIA
The naira is seen secure subsequent week as banks restrict international alternate transactions by each companies and particular person patrons on the unofficial black market to curb hypothesis, merchants mentioned.
The naira was barely weaker on the black market on Thursday at 462 per greenback from 457 every week in the past. It was quoted on the official market at 381 per greenback.
The central financial institution has employed a number of strategies to assist help the forex within the wake of decrease costs for oil, Nigeria’s foremost export.
The financial institution has tried to curb import demand to spur native manufacturing along with rationing greenback provide. The naira traded at 386.38 on the over-the-counter spot market NAFEX=FMDQ, extensively quoted by buyers and importers, on volumes in extra of $29.53 million on Wednesday
KENYA
The Kenyan shilling KES= is seen strengthening as business banks prepare to satisfy their tax obligations and money reserves necessities.
On Thursday, business banks quoted the shilling at 108.55/75, in comparison with final week’s shut of 108.40/60.
“Two elements can be at play over the approaching week as banks are on the point of meet their tax obligations and in addition their money reserves requirement ratios for the cycle which may result in strengthening of the shilling,” mentioned a dealer at one of many business banks within the capital Nairobi.
“However demand for the greenback from importers might offset the strengthening.”
UGANDA
The Ugandan shilling UGX= is seen softening within the coming days as a typical surge in demand for onerous forex within the final quarter of the 12 months begins to kick in.
At 1039 GMT business banks quoted the shilling at 3,705/3,715, in comparison with final Thursday’s shut of three,700/3,710.
“I feel we’ll begin to see demand climb, in line with the development that we are inclined to see round late October all the best way to December,” mentioned an impartial foreign exchange dealer within the capital Kampala.
Sometimes gasoline firms and different importers spur demand for {dollars} in October and November to pay for increased volumes of shipments to satisfy vacation season demand.
TANZANIA
Tanzania’s shilling (TZS=) is predicted to carry regular as onerous forex inflows from agricultural exports take up demand stress from producers and oil importers.
Business banks quoted the shilling at 2,315/20 on Thursday from a median of two,315/25 recorded every week earlier.
“The massive contributors of {dollars} subsequent week are more likely to be exports of spices, cashew nuts and cotton. This can cushion the alternate price in opposition to greenback demand from manufacturing and power sectors,” Terry Karanja, a treasury affiliate at AZA, a Nairobi-based FX buying and selling agency advised Reuters.
ZAMBIA
The kwacha ZMW= is predicted to come back below stress in opposition to the greenback subsequent week as onerous forex demand surges after tax funds.
On Thursday, business banks quoted the forex of Africa’s second largest copper producer at 20.1100/20.2120 per greenback from a detailed of 20.0350 every week in the past.
“It ought to come below stress subsequent week after the top of VAT (Worth Added Tax) funds on Monday,” one monetary analyst mentioned.
(Reporting by Omar Mohammed, Chris Mfula, Nuzulack Dausen, Chijioke Ohuocha, Elias Biryabarema; compiled by Elias Biryabarema; modifying by Emelia Sithole-Matarise)
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