Africa Currencies: Ghana Cedi and Nigeria Naira Expected to Fall

The Ghanaian cedi is expected to remain under pressure due to high demand from local corporate accounts, particularly in the energy and commerce sectors. According to Andrews Akoto, head of trading at Absa Bank Ghana, bids outstrip supply by over 3.5 times at Tuesday's central bank FX auction. The cedi was trading at 11.61 to the dollar on Thursday, compared to 11.50 a week earlier.

Nigeria's naira is also seen weakening due to foreign-currency buying from fuel importers, with downside risks skewed towards depreciation as fuel importers front-load dollar purchases to build inventories. The currency was quoted at 1,368 to the dollar on the official market on Thursday, compared with 1,383 a week ago.

The Ugandan shilling is forecast to extend recent losses as renewed fighting in the Middle East drives up global crude oil prices, potentially weakening it to around 3,750 in the coming week. On the other hand, Zambia's kwacha is likely to remain relatively steady due to strong copper prices.