🌍 Market Watch: Currency Updates from Ghana, Zambia, and Nigeria 🌍
ACCRA, June 11 (Reuters) – Exciting news is on the horizon for the currencies of Ghana and Zambia, as both are expected to gain strength against the US dollar in the coming week up to Thursday. Meanwhile, Nigeria’s naira is predicted to maintain a steady course, showing resilience in the face of fluctuating market dynamics, according to insights shared by seasoned traders.
Ghana: The Cedi’s Promising Outlook 🇬🇭
In Ghana, the cedi is anticipated to receive a much-needed boost, buoyed by enhanced foreign-currency liquidity stemming from proactive interventions by the central bank. According to recent data from LSEG, the cedi is currently trading at an encouraging rate of 11.30 to the dollar, a notable improvement from 11.80 just a week prior.
“We foresee a stronger performance from the cedi against the dollar in the week ahead,” noted Andrews Akoto, the head of trading at Absa Bank Ghana. “This positive trend is driven by reduced corporate foreign-exchange demands and ongoing enhancements in interbank liquidity.” he elaborated. Akoto pointed out that the recent central bank efforts have significantly alleviated the persistent corporate demand that had previously exerted downward pressure on the currency in May. Furthermore, a recent central bank FX auction highlighted this softening demand, with only 44% of the total available bids being placed, signaling a pivotal shift in market conditions.
Zambia: The Kwacha Gains Ground 🇿🇲
Over in Zambia, the kwacha is poised for a favorable upward trajectory, propelled by robust copper prices, supportive policies from the central bank, and a wave of optimistic market sentiment. Commercial banks recently quoted the kwacha at 17.54 to the dollar, a marked improvement from 17.92 the previous week.
“The mining sector is brimming with expectations for strong growth throughout the year, which is set to counterbalance the negative effects that rising oil prices could have on the current account,” expressed Diego Barnuevo, a market analyst from Ebury, a financial services firm. Barnuevo also pointed to the impressive advancements in economic fundamentals as a further catalyst for the kwacha’s bullish outlook.
Nigeria: The Naira Remains Steady 🇳🇬
Meanwhile, Nigeria’s naira is expected to remain stable, bolstered by strategic dollar sales orchestrated by the central bank. LSEG data showcases the naira trading at 1,360 to the dollar during intraday trading—a figure that has remained unchanged since last week. In the street market, the naira is exchanging hands at approximately 1,390 to the dollar.
“We anticipate that the naira will continue on a stable path, thanks to the central bank’s ongoing dollar sales efforts and its vigorous Open Market Operations (OMO) initiative aimed at absorbing excess naira from the market,” commented a trader familiar with the situation.
Stay Informed! 📊
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