WEEKAHEAD-Nigeria's naira to firm on c.bank move, Zambia's kwacha seen stable

Thu Apr 20, 2017 12:59pm GMT
 

LAGOS, April 20 (Reuters) - Nigeria's naira, is expected to post gains over the next week as a central bank move to ease business access to dollars trims demand on the black market, while Zambia's kwacha is seen supported by salary payments.

NIGERIA The naira is seen strengthening, helped by the central bank's decision to make it easier for small businesses to purchase dollars from the official window, and potentially cutting demand on the black market.

On Tuesday, the central bank cut the amount of paperwork small and medium-size businesses must provide to buy dollars.

The move was aimed at improving liquidity, cutting hurdles for businesses and helping narrow the gap between official and black market exchange rates.

The naira was quoted at 395 to the dollar on the black market on Thursday, stronger from last Thursday's 410 per dollar. On the official window it was quoted at 315 a dollar against 306.20 last Thursday.

The Central Bank of Nigeria (CBN) this week increased dollar sales to forex bureau operators to $40,000 each per week from $20,000 each previously, boosting liquidity and helping the naira to gain at the black market.

KENYA The Kenyan shilling is projected to stay under pressure in the coming week due to end-month dollar demand from oil importers, traders said.   Continued...

 
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