Experts Predict Naira, Ghana and Uganda Currencies' Exchange Rates Next Week

• The naira and other African currencies are predicted to appreciate against the US dollar in the forex markets
• The Nigerian currency has remained stable over the past few weeks and is expected to maintain this trend in the coming weeks
• The Ghanaian cedi and the Ugandan shilling are also expected to strengthen further following recent gains

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

African currencies, the Ghanaian Cedi and the Ugandan shillings, have been tipped for gains next week in the foreign exchange markets driven by inflows and supportive central bank actions.

While Nigeria's naira is expected to remain stable against the dollar.

African currencies' exchange rate

However, Kenyan and Zambian currencies are expected to depreciate next week.

Reuters reports that Ghana's cedi is expected to extend its recent gains against the dollar, supported by substantial hard-currency inflows from remittances and ongoing interventions by the central bank.

The cedi traded at 11.70 to the dollar on Thursday, an improvement from last week's closing rate of 12.40.

Chris Nettey, head of trading at Stanbic Bank Ghana, quoted said:

"The cedi continued its appreciation streak against the dollar, breaking the 12.00 key level on the interbank market"

For the Uganda shilling, it is anticipated to maintain a strong performance with the help of foreign-currency inflows expected towards the end of the month, particularly from non-governmental organisations (NGOs).

Commercial banks quoted the shilling at 3,646/3,656 to the dollar, closely aligned with last week's levels of 3,645/3,655.

Kenya's shilling faces slight weakening towards the end of May due to increased foreign exchange demand from the manufacturing sector outweighing inflows from remittances and NGO salaries, the report added.

The same fate awaits the Zambian kwacha amidst rising foreign-currency demand and limited inflows. On Thursday, the kwacha traded at 27.62 per dollar, up from 27.00 a week earlier.

Naira exchange rate

Naira's exchange rate is expected to remain stable next week following recent strengthening driven by inflows from foreign portfolio investments (FPIs) during a central bank auction.

On Thursday, May 22, the naira reversed the gains it recorded against the United States dollar in recent sessions, depreciating by 73 kobo or 0.05% in the Nigerian Foreign Exchange Market (NAFEM), closing at N1,584.26/$1 compared with Wednesday’s exchange rate of N1,591.25/$1.

Similarly, the naira weakened against the Pound Sterling in the official market yesterday by N1.72, selling at N2,127.96/£1 compared with the previous day’s rate of N2,126.24/£1.

However, the naira appreciated against the euro by N3.13 to quote at N1,791.95/€1, in contrast to Wednesday's value of N1,795.08/€1.

A trader said:

"I expect the naira to trade within the range of 1,585 to 1,595 next week."

CBN new dollar customs exchange rate

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has revealed the latest customs duty rate to be used by importers to clear goods at the ports.

According to data from Nigeria's trade portal, the CBN raised the exchange rate for clearing goods to N1,598.18 per dollar.

Source: Legit.ng