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Nigerian and Kenyan currencies under pressure this week

Nigeria's naira, Kenya's shilling and Zambia's kwacha are expected to be under pressure this week. Kenya's shilling is expected to extend its gradual march lower as foreign-currency demand ramps up from all sectors before the end of the year. Commercial banks quoted the shilling at 152.70/90 per U.S. dollar, compared with last Thursday's closing rate of 152.20/40. The Shilling hit a new record low on Thursday of 152.75/95.

Nigeria's naira will likely lose ground on the parallel market , as the Central Bank is yet to clear outstanding foreign-currency amounts owed in forward deals. The naira sold for 1,160 to the dollar in street trading where it trades freely on Thursday, weaker than 1,130 naira a week ago. The unit traded around 800 naira per dollar in official trading on Thursday afternoon , after falling as low as 1,051 naira in early trade.


Source: reuters.com

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