Ghanaian and Ugandan currencies seen on the front foot
ACCRA, Dec 12 (Reuters) -The Ghanaian and Ugandan currencies are expected to continue strengthening against the dollar in the next week to Thursday, while Nigeria's and Zambia's could be broadly steady, traders said.
GHANA
Ghana's cedi GHS= is expected to extend gains next week on the back of central bank support.
LSEG data showed the cedi trading at 14.60 to the dollar on Thursday, compared to 14.80 at last Thursday's close.
"The cedi has continued to strengthen this week, following last weekend's general election. There was initially some apprehension that the central bank's market support may reduce following the election as some perceived it might have been politically driven," said Sedem Dornoo, senior trader at Absa Bank Ghana.
"However, this has proven not to be the case as FX support has remained strong," he added.
UGANDA
Uganda's shilling UGX= is seen trading with a firming tone thanks to dollar inflows from Ugandans working abroad and sending cash to relatives for the holidays.
Commercial banks quoted the shilling at 3,652/3,662 to the dollar, compared with last Thursday's close of 3,663/3,673.
"Remittance inflows are quite strong, ... we expect them to be the main factor driving the shilling's direction in the remainder of the month," one trader said.
He said the shilling would likely swing in the 3,630-3,660 range against the dollar.
NIGERIA
Nigeria's naira is expected to hold steady on the official market in the coming week, driven by increased liquidity linked to remittance flows and a recently-launched automated trading system.
The naira NGN=D1 was quoted around 1,540 to the dollar in intraday trade on Thursday, traders said, versus 1,590 a week earlier.
The unit was changing hands at 1,680 to the dollar in street trading NGNP=.
"The new matching system and remittance inflows are driving the current stability in the market," one trader said.
"Still, there's a need for consistency in forex supply to the market, either from autonomous sources or through central bank interventions."
ZAMBIA
Zambia's kwacha ZMW= is likely to be relatively stable next week, supported by hard-currency sales by companies preparing to pay taxes.
On Thursday, the kwacha was trading at 27.60 per dollar from 27.05 a week ago.
"We have VAT (Value Added Tax) payments due next week and that should reduce pressure on the kwacha," one analyst said.
Reporting by Christian Akorlie, Elias Biryabarema, Elisha Bala-Gbogbo and Chris Mfula;
Editing by Alexander Winning
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