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Thursday 25 August 2016

Nigerian naira, Kenya shilling seen weaker, Ghana cedi to firm vs dollar

The naira is seen trading weaker in the coming days due to the dollar shortage and the impact of the central bank suspension of nine commercial lenders from forex transactions.
Traders said even though the central bank continued to sell dollars daily on the interbank market, its efforts were considered weak and inadequate.

The local currency was trading around 310 to the dollar on the interbank market, the same level as last week. The naira was quoted at 402 to the dollar on the parallel market compared with 397 a dollar last week.
The central bank suspended nine banks from forex transactions on Tuesday for failing to remit money owed to the government, but re-admitted one of them on Thursday after it remitted the said fund.

GHANA
Ghana's cedi is seen firm next week on improving forex inflows as offshore investors sell dollars to mobilise funds to buy domestic bonds, an analysts said.
The local unit was quoted at 3.9535 to the greenback at 1030 GMT on Thursday, down 3 percent since January, according to Reuters data.
"The government has reopened a 5-year (domestic) bond that is maturing on July 2021 and it is likely to lead to some forex inflows... I expect the cedi to regroup to the 3.9400-3.9550 range," said Barclays Bank Ghana currency dealer Jacob Brobbey.

KENYA
Kenya's shilling is seen easing, undermined by importer dollar demand from the energy sector, traders said.
At 1010 GMT, commercial banks quoted the shilling at 101.30/50 to the dollar, compared with last Thursday's close of101.45/55.
"Because this is going to be the end-of-month week, I still believe there will be a good amount of (dollar) demand in the market. I have a lot of oil clients, a lot of general retail importers," a trader at one commercial bank said.
Traders said they were also on the lookou for the central bank selling dollars. It did so on Thursday after the shilling weakened in reaction to an amended law that caps commercial lending rates.
(C) Reuters News

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