Ghana cedi expected to depreciate against the dollar, Nigeria's naira seen steady next week: Reuters

Ghana's cedi is expected to depreciate further next week on firm corporate demand, while Nigeria's naira is seen holding steady and Kenya's shilling is likely to remain stable, reflecting mixed currency trends across Sub-Saharan Africa, traders said.

Ghana

The cedi is forecast to weaken against the US dollar in the coming week, pressured by steady corporate demand from the energy, services, and construction sectors.

On Thursday, the cedi traded at 10.97, compared to 10.85 a week ago, according to London Stock Exchange data.

"The local currency remains under mild pressure, with FX demand persistently outpacing supply," said Ronald Mensah, a trader at Stanbic Bank Ghana. He noted that while the central bank's FX spot auctions have provided occasional relief, market tightness persists.

Andrews Akoto, head of trading at Absa Bank Ghana, added that an increase in central bank auction volumes for February compared to January's $1 billion could help ease some of the unmet demand.

Uganda

The Ugandan shilling is expected to depreciate next week on rising demand for hard currency from energy importers.

Commercial banks quoted the currency at 3,562/3,572 on Thursday, down from 3,475/3,485 last Thursday.

"Energy importers are in the market, and we think their demand will weigh negatively on the unit in the coming days," said an independent forex trader in Kampala, forecasting a trading range of 3,560-3,580.

Nigeria

Nigeria's naira is likely to hold steady next week, buoyed by foreign portfolio inflows from a recent bond auction and relatively subdued dollar demand. The currency traded at 1,388 to the dollar on the official market on Thursday, strengthening from 1,419 a week ago.

"It would remain fairly stable and could strengthen further with a bond auction in the coming week," said one trader.

Kenya

Kenya's shilling is anticipated to remain stable in the week ahead, supported by balanced supply-and-demand dynamics. Commercial banks quoted the shilling at 128.80/129.10 per dollar on Thursday, little changed from last week's 128.95/129.10.

"The demand for the shilling doesn't seem very high, but inflows are still strong, which makes the shilling remain stable," a trader said.

Zambia

The Zambian kwacha is set to sustain its firm trade against the dollar next week, aided by robust foreign exchange inflows from copper export revenues.

Zambia's currency appreciated to 20.29 per dollar on Thursday from 20.53 a week earlier.

"Overall, a surge in copper output and sustained high global prices bode favourably for the kwacha's outlook in the medium term," Access Bank said in a note after Zambia announced an 8% increase in 2025 copper production.

The metal accounts for over 70% of Zambia's export revenues and has benefited from high global demand tied to green technologies.