19/07/2025
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On Thursday, July 17, 2025, Reuters reported that Zambia’s kwacha is expected to continue strengthening in the coming week, while Nigeria’s naira and Ghana’s cedi are projected to remain relatively stable, based on market sentiment from traders.
In Uganda, the shilling is anticipated to gain slightly, supported by reduced demand for foreign currency from importers. Commercial banks quoted the shilling at 3,578/3,588 per US dollar unchanged from the previous week.
“Forex demand from importers is flat, and there are no signs of a rebound,” one trader noted, attributing the decline in FX demand to sluggish consumer spending.
In Zambia, the kwacha is seen extending its gains, buoyed by increased foreign currency inflows, particularly from the mining sector. As of Thursday, commercial banks quoted the currency at 23.20 per dollar, a significant improvement from 24.39 the previous week.
Meanwhile, Nigeria’s naira is expected to remain within a narrow trading band, thanks to continued US dollar sales by the central bank. The naira was quoted at about 1,533 per dollar in intraday trading on Thursday, compared to 1,524.50 a week earlier. In parallel street markets, the naira traded at approximately 1,535 to the dollar.
“I don’t expect the naira to weaken significantly from current levels,” one trader said.
Ghana’s cedi is also projected to remain largely stable. According to LSEG data, the cedi traded at 10.40 per dollar on Thursday, slightly up from 10.35 the previous week.
Traders expect the currency to hold its ground, citing regular central bank auctions and solid foreign reserves, which reportedly exceed IMF benchmarks.
While demand for US dollars is slowly increasing, central bank interventions have so far helped ease pressure on the currency.
©️Reuters
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