WEEKAHEAD-AFRICA-FX-Ghana's cedi seen weaker; Zambian kwacha to be steady

ACCRA, Feb 29 (Reuters) - Ghana's cedi is expected to weaken against the dollar in the next week to Thursday, while Kenya's and Uganda's shillings are forecast to be stable, traders said.

KENYA

Kenya's shilling is expected to broadly hold steady as the local currency tries to hold onto its recent gains.

Commercial banks quoted the shilling at 146.00/147.00 against the dollar on Thursday, the same level it closed at a week ago.

The shilling staged a recovery earlier this month after hitting repeated record lows against the dollar since late 2021, but it has since stabilised.

It is expected to trade near its current levels in the near term, one trader said.

GHANA

Ghana's cedi is expected to lose more ground due to strong foreign currency demand from corporates, mainly in the agriculture, manufacturing and energy sectors.

LSEG data showed the cedi trading at 12.55 to the dollar, versus 12.50 at last Thursday's close.

"The cedi remained on the back foot against the dollar this week as FX demand continued to pour in from both local and offshore players," said Sedem Dornoo, a senior trader at Absa Bank Ghana.

"Lacklustre FX flows in recent weeks have also contributed to the cedi's struggles. It's likely that the local unit will remain under pressure in the coming week," he added.

UGANDA

The Ugandan shilling is expected to be stable, with traders anticipating a recent wave of demand for dollars from commercial banks and importers to peter out.

Commercial banks quoted the shilling at 3,922/3,932, compared with Thursday's closing rate of 3,905/3,915.

The local currency experienced a sharp depreciation in recent days driven by a spike in interbank demand and appetite by importers, forcing the unit to hit a near three-year low.

"I think that wave has run its course, the market is already self-correcting. The unit will likely trade in stable range," said an independent foreign exchange trader in the capital Kampala, adding the unit will likely oscillate in a 3,900-3,950 range.

ZAMBIA

Zambia's kwacha is likely to hold steady with a bias towards minimal depreciation after the central bank tightened liquidity.

On Thursday, the currency of Africa's second-largest copper producer was trading at 23.4250 from 22.8000 a week ago. (Reporting by Christian Akorlie, Bhargav Acharya, Chris Mfula, Elias Biryabarema; Editing by George Obulutsa and Jan Harvey)