Several major African currencies, including Ghana’s cedi, Uganda’s shilling, and Nigeria’s naira, are expected to depreciate against the US dollar in the coming week, according to a Reuters poll of traders published on July 23.
Kenya’s shilling and Zambia’s kwacha are projected to remain relatively stable.
Ghana Cedi Under Pressure
Ghana’s cedi is anticipated to face continued strain as strong corporate demand for US dollars outpaces supply. The currency traded at 11.61 per dollar on Thursday, compared with 11.50 a week earlier. Traders cited heavy foreign exchange demand from the energy and commerce sectors, with bids at the central bank’s FX auction exceeding supply by more than 3.5 times.
Uganda Shilling Extends Losses
Uganda’s shilling is forecast to continue its recent decline as renewed conflict in the Middle East pushes global crude oil prices higher. Commercial banks quoted the currency at 3,735/3,745 per dollar, compared with 3,685/3,695 a week earlier. Traders expect the shilling to weaken toward 3,750 unless geopolitical tensions ease.
Zambia and Kenya Hold Steady
Zambia’s kwacha is expected to remain relatively stable, supported by firm copper prices. Commercial banks quoted the currency at 18.54 per dollar, compared with 18.44 a week earlier. Analysts said strong copper prices should continue to underpin the currency.
Kenya’s shilling is also projected to maintain its long-running stability, quoted at 129.40/60 per dollar, unchanged from the previous week.
Regional Implications
For Nigerian businesses and importers, the continued weakness of the cedi and shilling signals persistent dollar demand across the region, which could keep pressure on the naira as well.
Traders will be closely watching central bank interventions and oil price movements in the days ahead as geopolitical developments in the Middle East continue to influence regional currency trends.
