African Currencies in Focus: Zambia Steady, Ghana Weakening

Zambia's kwacha is expected to remain steady against the dollar in the coming week due to ongoing political tensions ahead of President Hakainde Hichilema's swearing-in for a second term. Commercial banks quoted the currency at 19.18 per dollar on Thursday, slightly down from last week's 18.98.

Ghana's cedi may weaken next week as demand for foreign currency outstrips supply on the interbank market. The dollar is likely to gain in value due to energy sector and coupon dividend repatriation driving up demand, according to Andrews Akoto of Absa Bank Ghana. The cedi traded at 11.15 to the dollar compared to last week's 11.05.

In Uganda, the shilling may also weaken as fuel importers continue to drive up demand for hard currency, an independent trader in Kampala said. The shilling was quoted at 3,740/3,750 on Thursday, slightly down from last week's close of 3,715/3,725.

Nigeria's naira may rally next week as oil companies and foreign funds buy local securities, lifting the currency to 1,344 against the dollar on the official market. This follows a slight appreciation this week, with one trader expecting further gains if interest rates remain high and the central bank continues to sell treasuries.