Naira, Other African Currencies Expected to Stay Stable Against the Dollar

Despite tough economic conditions in many parts of Africa, traders and analysts say several currencies across the continent are expected to remain steady against the U.S. dollar this week. 

Nigeria, Ghana, Uganda, Kenya, and Zambia are among the countries whose currencies are showing signs of short-term stability, thanks to central bank efforts, foreign investment, and reduced market pressure.

Nigeria

The naira is expected to remain largely unchanged in both official and parallel markets. It traded at ₦1,524 per dollar during intraday transactions, while the street rate hovered around ₦1,570. 

The Central Bank’s regular interventions and inflows from foreign portfolio investors attracted by high interest rates are currently supporting the naira.

A local currency trader noted, “With these inflows and market liquidity improving, the naira should stay steady in the coming days.”

Ghana

Ghana’s cedi continues to hold firm, trading at 10.30 to the dollar unchanged from the previous week. Analysts credit ongoing central bank support and reduced activity in the interbank market for the currency’s current strength.

Chris Nettey, Head of Trading at Stanbic Bank Ghana, said, “The cedi is stable and we expect that to continue unless there’s a major shift in demand.”

Uganda

The Ugandan shilling is also forecast to remain steady, currently trading between 3,579 and 3,589 per dollar. Mid-month tax deadlines, which require businesses to hold more local currency, are helping reduce the usual demand for dollars.

One trader explained, “Foreign currency demand is soft right now, and that’s helping the shilling stay within a narrow range.”

Kenya

Kenya’s shilling is trading quietly at around 128.90 to 129.40 per dollar, almost unchanged from last week. Traders say mid-month periods typically come with low market activity, which helps keep the shilling stable.

“It’s been quiet, and unless something big happens, we expect that calm to continue,” a Nairobi-based trader said.

Zambia

The Zambian kwacha, trading at 24.39 to the dollar, has shown a slight improvement from last week’s 24.45. Analysts are optimistic about the kwacha’s direction, thanks to positive signals around the country’s economy and debt restructuring progress.

A report by fintech firm Ebury noted, “Zambia seems to be moving past its debt issues and drought-related setbacks. The outlook for the kwacha is improving.”