JOHANNESBURG, Feb 27 (Reuters) - Nigeria's naira is expected to stabilise in the week ahead as the central bank is likely to continue supporting the currency, which has come under increased pressure since the suspension of the central bank governor last week.
In Ghana, the cedi is likely to remain under pressure as FX controls recently introduced by the central bank have failed to improve dollar inflows significantly.
NIGERIA
The naira
The currency of Africa's top crude producer has been under pressure following last week's suspension of central bank governor Lamido Sanusi, weighed down by offshore investors dumping fixed income assets and equities.
In a bid to restore confidence, the central bank has been intervening on the interbank market to prop up the naira, running down its reserves to manage volatility in the currency.
The naira closed at 164.90 on Thursday, in line with its close a week ago, after the central bank sold dollars to some lenders.
"We expect more direct dollar sales by the central bank in the market and this should provide some support for the naira and keep it within the prevailing band of 164.80-165.20 in the coming days," one dealer said.
Traders said month-end dollar sales by oil companies should also provide support for the local unit.
GHANA
Ghana's cedi
The local unit fell nearly 20 percent against the greenback last year, and has lost a further 8 percent since January due to unmet dollar demand from local firms and commerce operators for their imports.
The central bank said last week it injected around $200 million into the interbank market this month, in addition to banning the use of dollars in domestic transactions.
However, traders said the central bank's measures were yet to have an impact.
"The fundamentals have been laid but the flows are yet to come in," said Stanbic Ghana trader Christopher Nettey, who projected a 2.5500 dollar/cedi rate next week from an average 2.5400 currently.
The International Monetary Fund said on Wednesday it supports the central bank's policy tightening to shore up the cedi but said its actions must be supported by fiscal measures to enable them to yield results.
UGANDA
Uganda's shilling
At 0941 GMT commercial banks quoted the currency of east Africa's third largest economy at 2,530/2,540 - stronger than last Thursday's close of 2,452/2,457.
The shilling nosedived on Wednesday, two days after Uganda's
President Yoweri Museveni signed into law anti-gay legislation that prompted warnings of aid cuts by Norway and Denmark.
Uganda's central bank intervened for the second consecutive day on Thursday to stem the slide in the shilling, although there has been little impact on the local currency.
"I think after a couple of days all this news and noise about aid cuts and the anti-homosexual law will go out and the market will settle back," said KCB Uganda trade Peter Mboowa.
"The shilling could remain relatively weak but we'll see the volatility go out as market moves start to depend more on fundamentals rather than the speculation and fears about aid."
In a market note on Wednesday, Citibank Uganda said it expected the Bank of Uganda "to continue with intervention to prevent price instability."
KENYA
Kenya's shilling
At 1136 GMT, commercial banks quoted the shilling at 86.45/55 to the dollar, compared with Thursday's close of 86.00/10.
"End of month demand is coming and going. There is a possibility we will see the shilling strengthening," said one senior trader, adding that the shilling was projected to trade in the 86.10 to 86.60 range in the days ahead.
TANZANIA
Tanzania's shilling
Commercial banks in Dar es Salaam quoted the shilling at 1,625/1,630 on Thursday, marginally stronger than 1,628/1,633 a week ago.
"The shilling is under pressure due to demand from importers. But we expect it to remain in same levels next week due to support from the central bank," said Theopistar Mnale, a trader at Tanzania Investment Bank.
"We normally do not get a lot of inflows in the first three months of the year, therefore the shilling will continue to be under strain until we get significant inflows."
Market participants said they expect the shilling to trade in a tight 1,620-1,630 range in the days ahead.
The Bank of Tanzania said on its website it had traded $33.55 million on the interbank foreign exchange market over the past week.
ZAMBIA
The kwacha
At 1125 GMT commercial banks quoted the currency of Africa's leading copper producer at 5.805, down from 5.765 a week ago, and traders said the local unit could plunge lower.
"In the coming week, the kwacha is likely to maintain its trade between K5.750/5.850 per dollar," one commercial bank trader said.
"The local unit has witnessed very little support from corporate sellers while demand has remained relatively strong. In the absence of improved dollar supply, the local unit could hit K5.900/1$ in the medium term."
Zambia's central bank will hike statutory reserves for commercial banks to 14 percent from 8 percent from March 10 in a bid to reduce liquidity.
Traders said the move would help prop up the ailing kwacha
(Reporting by Oludare Mayowa, Kwasi Kpodo, Elias Biryabarema, George Obulutsa, Fumbuka Ng'wanakilala and Chris Mfula; Editing by Tosin Sulaiman and Catherine Evans)
((tosin.sulaiman@thomsonreuters.com)(+27 11 775 3153)(Reuters Messaging: tosin.sulaiman.thomsonreuters.com@thomsonreuters.net))
Keywords: AFRICA CURRENCY/
