Naira and Other African Currencies Expected to Strengthen Against US Dollar

The article discusses the strengthening of four African currencies, including the Naira, against the US dollar. The Naira has seen significant appreciation, reaching N52.75 against the dollar due to improved foreign exchange supply and strong oil receipts.

The parallel market is trading around N1,445 per dollar, with expectations of further appreciation. Zambia's Kwacha is also expected to appreciate due to improved macroeconomic conditions and resilient copper prices.

Uganda's currency is predicted to remain stable, while Ghana's Cedi may weaken further due to strong dollar demand. Analysts note that the Cedi traded at 10.95 per dollar, slightly below the previous week's rate.

The article also highlights the impact of recent central bank measures on foreign currency usage in Zambia and Ghana. Andrew Akoto, head of trade at Absa Bank Ghana, emphasizes the strength of the dollar and the excess demand for it, potentially pushing the Cedi lower.

The article also mentions Nigeria's efforts to boost its foreign reserves to support the Naira's stability in the foreign exchange market.