As global financial markets react to fluctuating U.S. interest rates and commodity price swings, several African currencies, including those of Nigeria, Ghana, Uganda, Kenya, and Zambia, are projected to maintain relative stability against the U.S. dollar in the coming week.

Traders and analysts point to a blend of central bank interventions, foreign investment inflows, and seasonal demand patterns as key factors underpinning this resilience.

Nigeria's naira supported by investor confidence

Nigeria’s naira is expected to remain broadly stable across both official and parallel markets, buoyed by ongoing central bank actions and a surge in foreign portfolio investments.

On Thursday, the naira traded at approximately 1,524 per dollar during intraday transactions, showing minimal movement from last week’s 1,527 close. In the parallel market, it exchanged at around 1,570 per dollar.

One Lagos-based currency trader noted:

"The naira is expected to remain relatively stable in the coming week largely due to continued inflows from portfolio investors drawn by high yields that are boosting market liquidity."

Despite domestic inflationary pressures, market sentiment remains cautiously optimistic, with expectations for the naira to trade within a narrow band over the next week. Ghanaian Cedi finds ground Ghana’s cedi is anticipated to hold steady as well, with subdued trading on the interbank market and continued support from the Bank of Ghana.

The cedi was quoted at 10.30 to the dollar on Thursday, unchanged from the previous week.

Ghanaian Cedi finds ground

Ghana’s cedi is anticipated to hold steady as well, with subdued trading on the interbank market and continued support from the Bank of Ghana. The cedi was quoted at 10.30 to the dollar on Thursday, unchanged from the previous week.

Chris Nettey, head of trading at Stanbic Bank Ghana, said:

"The cedi continued to hold its ground against the dollar this week, supported by sustained central bank intervention amid a slowdown in interbank activity. We expect a similar trend to persist in the coming sessions."

Andrews Akoto of Absa Bank Ghana echoed that outlook, noting a likely continuation of the current stable range in the short term.

Ugandan shillings dampened by dollar demand

Uganda’s shilling is forecast to remain range-bound as companies convert forex reserves into local currency to meet mid-month tax obligations.

The shilling traded at 3,579/3,589 to the dollar, marginally firmer than last Thursday’s 3,582/3,592 close. "(Dollar) demand will be a little soft because of mid-month tax obligations," a trader said, adding that the shilling was likely to swing in the 3,550-3,580 range.

Kenyan shilling holds firm in quiet market

Kenya’s shilling is likely to maintain its current levels amid relatively muted market activity. It was last quoted at 128.90/129.40 per dollar, virtually unchanged from last week’s 129.00/129.50.

"It has been relatively stable. We expect this stability to continue as we usually have minimal activity mid-month," a trader said.

Zambian kwacha gains modestly as outlook improves

Zambia’s kwacha may be poised for further strength, supported by improved economic sentiment and progress in tackling structural challenges.

On Thursday, it traded at 24.39 to the dollar, slightly stronger than the 24.45 rate a week earlier.

A recent report by fintech firm Ebury highlighted Zambia’s strides in resolving its debt restructuring and managing the impact of prolonged drought conditions.

The report said: "Zambia appears to be largely overcoming its debt challenges and drought-related economic disruptions."

Bottom Line

While global currency markets remain sensitive to U.S. monetary policy shifts and geopolitical tensions, several African currencies are showing signs of resilience.

Backed by strategic interventions and improved investor confidence, these currencies are expected to hold their ground in the short term, though longer-term trajectories will depend on domestic reforms and external economic shocks.