NAIROBI, July 18 (Reuters) - Kenyan currency forecast toweaken, Tanzanian shilling to hold steady while Nigeria's nairacould ease.
KENYA
The Kenyan shilling is forecast to weaken against thedollar in the coming week because of excess money marketliquidity and purchases of dollars by oil importers meet theirmonth-end obligations, traders said.
Commercial banks quoted the shilling at 103.00/20 perdollar, compared with 102.85/103.05 at last Thursday's close.
"Going into next week we could see renewed demand asimporters come in for end of month ... there is excess liquidityso that will put pressure on the shilling," said a senior traderfrom one commercial bank.
TANZANIA
The Tanzanian shilling is expected to hold steady next weekbecause demand for dollars is in balance with supply.
Commercial banks on Thursday quoted the Shilling at2,294/2,304 slightly up from 2,295/2,305, a Senior Forex traderfrom one of the commercial banks in Dar es Salaam told Reuters.
"We forecast more stability of the currency next week nearlyto the same levels as of now or with slightly appreciationbecause we are approaching the end of the month where corporateswill be buying shillings to meet their end of the monthobligations. Also, we expect more inflows from tourism whichwill balance with the demand from manufacturing and energysectors," he said.
NIGERIA
Nigeria's naira could ease next week amidst risingdollar demand as foreign inflows dry up in the wake of decliningbond yields and a central bank policy to boost local lending,traders said.
The naira traded as low as 361.75 naira this week on tightsupply, from its 360 support level. The currency was quoted at360 on exchange bureaus and at 306.95 on the official market,backed by central bank. Nigeria operates a multiple currencyregime.
The central bank plans to sell open market bills on Thursdayto attract foreign investors after intermittent auctions as thebank tries to shift policy to force lending to help an economystuck in low gear.
Traders said pressure was building on the currency. One toldReuters that the bank had been trying to fill $10 million worthof customer orders this week but no supply.
"There is no money in the market, everybody is on bid," onetrader said. "We are dependent on foreign investors and they arenot coming in."
ZAMBIA
The kwacha is expected to weaken against the U.S.dollar next week, weighed down by increasing demand for hardcurrency.
On Thursday, commercial banks quoted the currency at 12.570per dollar from a close 12.510 a week ago.(Reporting by John Ndiso, Nuzulack Dausen, and ChijiokeOhuocha; compiled by Omar Mohammed; editing by Larry King)