THE East African currencies are expected to hold steadily days ahead after easing pressure and demand of US dollars in their respective economies.
The Kenyan shilling steadiness is seen ahead after the election rerun as market normalcy resumes.
Pressure on the shilling continued to show steadiness thanks to cashew nut forex inflows. The shilling/US dollars pair closed with a difference of 39 basis points from the previous session.
“Pressure on the local currency has started to ward off. “Matching levels of demand and supply have contributed to the stability of the pair but recent inflows from cashew nut stakeholders have added to the easing of the pressure on the local currency,” CRDB Bank said in daily Market Highlights.
Kenya’s local currency is expected to remain stable following the conclusion of its presidential election rerun. The Kenyan shilling is seen steady in the coming week barring any new political developments, with market normalcy resuming following the repeat election, traders said.
The Kenyan shilling was broadly stable against the dollar on Monday due to inflows from offshore investors buying stocks subduing demand from oil companies and retail importers, traders said. At 0804 GMT, commercial banks quoted the shilling at 103.60/80 per dollar, the same as Friday’s close.
“Activity is up mainly because of corporate requirements as we wait for the political transition to wind up,” said a trader from a commercial bank.
The Ugandan shilling is forecast to trade in a stable range, supported by seasonal remittance inflows from Ugandans living abroad as well as commodity exporters. The central bank quoted the shilling at 3,652/83 at midday, little-changed from last Friday’s close of 3,645/3,655.
The shilling was projected to continue holding as analysts anticipating remittances from those returning for holidays to start flowing in also from exporters of coffee and other commodities.
Rwanda franc opened this week at 849.18 slightly down from 848.55 of last Monday against US dollars and expected to maintain the same insignificant fluctuation level in the days ahead.
Burundi franc also depreciated insignificantly after opening at 1771.66 yesterday from 1770.59 of last Monday against greenback.