EAST African currencies have maintained their pace against US dollar with minor either side fluctuations. The currencies, mostly Tanzania, Kenya shillings, maintained their stance after holding firmly against the greenback and expected to sustain steadiness.
However, the Ugandan shilling seen to be fluctuating last week. Money analysts in three leading economies in the region said this week the shillings may continue to uphold their positions, if things remain constant in the market.
Tanzania Tanzanian shilling maintained its position last week and predicted to hold even further this week, unless a sizable demand enters the market. “With moderate activities from importers, same trend is expected in a near future unless a sizable demand enters the market,” TIB Corporate Bank said in Market Updates yesterday.
Another bank, CRDB said the pair managed to maintain the levels during last Friday’s session with sellers of the greenback holding on and waiting for the appreciation of the foreign currencies. “… [While], buyers taking advantage of the USD slip. We [CRDB] expect the greenback to resume its levels due to a mismatch in supply and demand,” CRDB said. The bank in its Market Highlights said currently, the market is dominated by the participants from the manufacturing and energy industry.
The bank quoted the shilling yesterday at 2,260/90 against the dollar. Kenya Kenyan currency is said to have maintained its stance against the dollar last week and will continue in this week as well. The steadiness, experts said, was supported by inflows from offshore investors buying government debt and thin demand from importers.
By yester-morning the commercial banks quoted the shilling at 100.90/101.10 per dollar, unchanged from Friday’s close. Uganda Uganda’s shilling is forecast to weaken on expected demand from commercial banks and importers, fuelled by the central bank’s lack of intervention.
The shrinking of the currency is seen to be underpinned by anticipated panicked demand from commercial banks and importers. The Ugandan shilling was 3,810/3,820, against the dollar yesterday morning. One analyst said the silence of the central bank to come out with the comment and intervene on the trend, is said to fuel anxiety and predicted to cause further weakening of the currency.